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Osun Govt Says Withheld N230bn Not Affecting Salaries

The Osun State Government has refuted claims that local government workers are going without salaries due to the prolonged withholding of federal allocations.

The clarification comes against the backdrop of a long-running political and legal tussle over local government control in Osun State.

Following Governor Ademola Adeleke’s inauguration in 2022, he dissolved local councils elected under the previous All Progressives Congress administration of Gboyega Oyetola.

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But the sacked APC officials allegedly refused to vacate offices, leading to competing claims of legitimacy.

In September 2025, a court sitting in Oyo State restrained United Bank of Africa from paying, releasing, disbursing, or tampering with funds in the 30 LGs accounts opened in the names of court-sacked APC chairmen and councillors.

The injunction was to remain in place pending the hearing and determination of a motion on notice for an interlocutory injunction.

However, according to the government, core salaries have continued uninterrupted throughout state-level interventions.

In a statement issued via X on Tuesday, the state Commissioner for Information and Public Enlightenment, Kolapo Alimi, described such narratives as misleading and factually inaccurate.

“There has been no interruption in the payment of core salaries to local government workers. Salaries are being paid fully and as at when due.

“Despite the hijacking of local government allocations for almost a year, funds now totalling approximately N230bn, the Osun State Government under Governor Ademola Adeleke has sustained salary payments through the state’s resources.

“This intervention has ensured financial stability for workers and shielded families from avoidable hardship,” Alimi stated.

However, he added that “the continued hijacking of the N230bn allocation has directly impacted the payment of certain allowances and supplementary entitlements ordinarily funded from those statutory allocations.

“These obligations are structurally tied to funds accruing to the local government system and cannot be fully accommodated in the absence of those resources,” he said.

The withheld allocations, originally intended for grassroots administration, development projects, operational costs, and worker-related benefits, have left local government finances significantly constrained, the commissioner added.

Alimi added that “while allowances and other supplementary payments have been affected by the withheld funds, salaries remain consistent and uninterrupted.

“Clear distinctions must be maintained to ensure public understanding is guided by facts.”

Governor Ademola AdelekeOsun state government
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