Osun’s ₦238.4bn LG Funds: Questions Mount Over Spending and Accountability

Adeleke blames political saboteurs for damaged Osogbo flyover

Osun State’s 30 local governments received ₦238.4 billion in federal allocations between January 2025 and June 2026. However, residents across several communities continue to struggle with poor roads, failing health centres, inadequate schools and unreliable water supplies.

An investigation by The Guardian and DevReporting has raised questions about the whereabouts and management of the funds. It also highlights a prolonged political dispute over who controls the councils and their finances.

The investigation found that some communities lack basic public services despite the substantial allocations. Residents have also contributed their own money to repair roads, restore electricity and maintain public facilities.

Residents struggle despite billions in allocations

In Oore, a village in Boripe Local Government Area, Suliat Oyetunji said the local primary healthcare centre rarely had nurses available.

She eventually gave birth to her twins at home because the facility could not provide the care she needed.

The investigation found the health centre locked during a visit.

Other communities reported similar problems. At Okebode in Atakunmosa West, healthcare workers said they lacked essential drugs, equipment and reliable electricity.

One worker, Ayoola Odunayo, said staff sometimes used mobile phone flashlights to deliver babies.

Residents also complained about damaged roads and bridges. In Odofin, flooding regularly disrupts movement because the community lacks proper drainage.

In Ikire, a damaged bridge has forced farmers to take longer routes to transport their produce.

Schools and water facilities face neglect

The investigation also uncovered serious problems in public schools.

At Oore, the only public school reportedly had just one teacher, who also served as its headmaster. Community leaders said the school needed at least five teachers.

In Abiri-Ikoyi, residents described the condition of CAC Primary School as deteriorating. Some schools in other communities also lack adequate teachers and basic learning facilities.

Water supply remains another major concern.

Residents of Ikoyi said they had not enjoyed public water supply since 2010. Communities in the area also reported electricity outages lasting up to two years.

At Okebode, a government water project stopped working. Residents and their traditional ruler had to arrange an alternative supply.

Traders in Ikire also complained about broken public toilets and unreliable market water facilities.

BudgIT identifies gaps in healthcare projects

Findings from BudgIT, a civic organisation that monitors public spending, also raised concerns about service delivery.

Between January and June 2026, BudgIT tracked 28 primary healthcare centres across 10 local government areas in Osun.

None of the facilities met all the required standards.

Head of Tracka at BudgIT, Joshua Osiyemi, said only one facility had an ambulance. Three had laboratories, while just four had doctors. Twelve facilities had functioning water systems.

BudgIT also monitored school projects across the state.

The organisation reported eight completed projects, two ongoing projects and two projects that had not started. It also identified a school pit latrine project that received payment despite the absence of the facility.

Osiyemi said BudgIT had submitted a Freedom of Information request to the Osun State Government for an explanation. The organisation had yet to receive a response when the investigation interviewed him.

Political dispute clouds control of council funds

The controversy over the allocations stems from a prolonged struggle between APC and PDP factions over local government leadership.

The dispute followed the October 15, 2022 local government election, which produced APC chairmen and councillors across Osun.

The Federal High Court in Osogbo later nullified that election. The court ruled that it violated Sections 29 and 32 of the Electoral Act 2022.

The Osun State Government, led by Governor Ademola Adeleke, conducted another local government election on February 22, 2025.

However, the APC interpreted an earlier Court of Appeal ruling as restoring its elected council officials.

Attempts by APC-aligned officials to reclaim council secretariats triggered violent confrontations in February 2025. The clashes reportedly killed former Irewole council chairman Remi Abass and six other people.

The Supreme Court had also affirmed financial autonomy for local governments in July 2024. However, the political dispute continued to complicate control of council accounts and allocations.

In June 2026, the Federal High Court in Osogbo dismissed a suit by APC-elected chairmen seeking an extension of their tenure. The court ruled that their three-year tenure had ended in October 2025. The APC rejected the judgment and appealed.

Auditor-General says he cannot access bank statements

Osun Auditor-General for Local Governments, Isiaq Awotunde, said he could not obtain the bank statements needed to audit the council funds.

He said the allocations had accumulated to more than ₦238 billion over nearly two years. Yet, he lacked access to the financial records required to examine their management.

Awotunde explained that he had verified the authorised signatories to the council accounts during the political dispute.

He then submitted the details to the Central Bank of Nigeria and United Bank for Africa, where the funds reportedly remained.

However, he said the CBN rejected his request for bank statements.

The auditor-general later worked with the state Ministry of Justice to submit another request. He said the bank had yet to respond.

Awotunde insisted that political disagreements should not prevent him from auditing public funds.

APC and PDP factions offer conflicting accounts

The two political factions gave different accounts of their access to the allocations.

The PDP-aligned council leadership said it had not accessed any of the funds since its election in February 2025.

However, APC-aligned officials confirmed that they opened new council accounts with United Bank for Africa. They said they could not establish the exact amounts credited to those accounts.

Adegoke Ogunsola, the APC faction chairman of Irepodun LGA, said UBA agreed to open accounts after other banks declined.

He also said he could not confirm the balances because he did not receive account credit alerts.

Osun Commissioner for Local Government and Chieftaincy Affairs, Dosu Babatunde, criticised the arrangement.

He accused the APC-aligned chairmen of appointing people outside the local government workforce as treasurers. He also questioned the legality of the new accounts.

Babatunde said the state government approached a court to stop UBA from releasing further funds to the APC faction.

UBA declined to comment on the dispute. Its Group Head of Media and External Relations, Ramon Nasir, said the matter remained before the courts.

Former Speaker blames political interests

Former Speaker of the Osun State House of Assembly, Mojeed Alabi, blamed political interests for the decline in local government services.

He argued that excessive spending on political officeholders leaves little money for infrastructure and development.

Alabi claimed recurrent expenditure accounts for more than 80 per cent of local government spending.

He also warned that financial autonomy alone would not guarantee accountability without effective public oversight.

Meanwhile, PDP faction chairman of Irepodun LGA, Sikiru Ajibade, said the political dispute had prevented elected council officials from accessing allocations.

He contrasted the situation with his earlier caretaker administration. He said his team tarred two roads, built an FRSC office and provided public toilet facilities.

APC chairman in Osun, Tajudeen Lawal, also said the councils lacked full access to their allocations. He claimed available funds largely went towards salary payments.

Residents demand accountability and basic services

The investigation found that some communities now rely on local contributions to provide services that local governments should ordinarily deliver.

In Ilobu, the Ilobu Development Union has supported projects involving roads, schools and healthcare facilities.

Economics professor and union president Olufemi Saibu said residents increasingly depend on the organisation to pursue community development.

A former Obafemi Awolowo University Political Science Department head, Professor Damilola Agbalajobi, said local governments should provide essential services closest to residents.

She questioned how councils could receive substantial allocations without delivering adequate healthcare, security and infrastructure.

The ₦238.4 billion allocation figure has therefore raised important questions about financial transparency and local government accountability in Osun.

However, the investigation has not established that the entire sum disappeared. Access to bank records, independent audits and clear explanations from the competing council authorities remain essential to determining how the money was managed.

Leave a Reply