NLC Demands Immediate Release of Withheld LG Funds in Osun, Condemns Political Interference

The Nigeria Labour Congress (NLC) has demanded the unconditional and immediate release of all withheld local government allocations to the duly elected councils in Osun State, warning that continued obstruction of funds undermines grassroots governance and workers’ welfare.

This call was contained in a communiqué issued after the meeting of the NLC’s National Administrative Council (NAC) and Central Working Committee (CWC) held in Abeokuta, Ogun State.

Signed by NLC President, Comrade Joe Ajaero, and General Secretary, Comrade Emmanuel Ugboaja, the statement condemned what it described as partisan intervention by the Office of the Attorney-General of the Federation, in collusion with the Minister of Finance and the Central Bank of Nigeria (CBN), alleging that these actions have deprived local government workers of salaries and disrupted essential services including healthcare, education, and infrastructure.

“The CWC reaffirmed its position in support of genuine local government autonomy as a cornerstone for grassroots development, accountability, and democratic participation,” the communiqué read.

The union urged the Attorney-General to retract all “unlawful directives” issued to federal financial institutions and to desist from further politicising local government autonomy.

“It reviewed with grave concern the deliberate withholding and diversion of statutory allocations due to the democratically elected Local Government Councils in Osun State,” the communiqué stated. “This act constitutes a blatant violation of the Constitution, the Fiscal Responsibility Act, and the judgment of the Court of Appeal affirming the legitimacy of the current Local Government leadership in Osun State.”

The NLC further called on all stakeholders involved in the ongoing constitutional review to ensure provisions that safeguard the financial and administrative independence of local governments are enshrined in law.

Warning of possible action, the union said failure to comply within a reasonable timeframe would compel it to defend workers’ rights and uphold the rule of law.

The crisis in Osun’s local governments stems from a longstanding political stalemate between the Peoples Democratic Party (PDP) and the All Progressives Congress (APC) over the legitimacy of elected council officials, leading to competing claims over control of the state’s 30 council secretariats and the Area Office.

The impasse has triggered industrial action by the Nigeria Union of Local Government Employees (NULGE) since February and sporadic clashes between APC and PDP supporters.