The unreleased funds, which are allocations meant for the state’s local governments, cover the period between March and December 2025.
A SaharaReporters review of Federal Allocation Account Committee (FAAC) data released by the Office of the Accountant-General of the Federation shows that President Bola Tinubu’s administration has failed to release a total of ₦131.5 billion to the Osun State Government over a ten-month period.
The unreleased funds, which are allocations meant for the state’s local governments, cover the period between March and December 2025.
In March, Osun State was expected to receive ₦11.9 billion. The amounts for April, May, and June were ₦11.2 billion, ₦11.7 billion, and ₦12.1 billion respectively. Further review shows that the figure for July 2025 stood at ₦12.8 billion, while August recorded ₦14 billion.
The amount withheld in September was ₦14.4 billion, October ₦15.8 billion, November ₦14.6 billion, and December ₦13.09 billion, bringing the total unreleased funds to ₦131.5 billion.
Earlier, SaharaReporters reported that the Federal Government had withheld Osun State’s local government allocations since March 2025.
The non-release of the funds has generated widespread controversy, largely stemming from the conduct of a local government election in Osun State in February 2025. The election was faulted by the All Progressives Congress (APC), which controls the Federal Government and oversees the disbursement of funds to states and local governments.
In December, SaharaReporters reported that the Supreme Court criticised Tinubu’s administration for withholding Osun State’s local government funds.
The court declared unequivocally that the Federal Government acted unlawfully by seizing the funds, holding that the action was "in grave breach of the 1999 Constitution."
Delivering the lead judgment, Justice Mohammed Idris held that the conduct of the Federal Government was constitutionally indefensible.
He stated that "the hand of the federal government was soiled" in its decision to unjustly withhold the funds and admonished the government to ensure that allocations were "directly channeled to local accounts."
The court also dismissed the Attorney-General of the Federation’s contempt allegations against Osun State, noting that he was "in more contempt than Osun by not paying the fund as required by law."
While faulting the Federal Government, the court simultaneously reprimanded Osun State for initiating the suit without proof of consent from the local governments. Justice Idris ruled that since "there was no evidence that Osun Attorney General was briefed by the local governments, he ought not to have filed the case on their behalf."
In a minority judgment, Justice Emmanuel Agim dissented, insisting that the Osun Attorney General had the authority to file the suit.
He added that the Federal Government’s action was unacceptable, describing it as "in bad taste because it was capable of crippling the activities of the Councils."