The President of Nigeria, Bola Ahmed Tinubu, is reported to be preparing for a high-level meeting with Osun State Governor Ademola Adeleke in a bid to find a political solution to the prolonged standoff over withheld local government (LG) funds.
The meeting is expected amid rising tensions between the Federal Government and the Osun State Government over non-release of statutory LG allocations. Governor Adeleke has repeatedly called on President Tinubu to intervene in the matter, saying that the failure to release the funds has left local councils without vital resources to pay salaries and run essential services.
According to a report on January 26, Adeleke said that LG allocations the “primary source of remuneration for primary school teachers, nurses, and other health workers”, have been withheld despite a Supreme Court ruling declaring that the Federal Government acted unlawfully in seizing the funds. The dispute stems from the conduct of local council elections in Osun State in February 2025, which was opposed by the All Progressives Congress (APC) on legal grounds.
The Federal Government subsequently withheld roughly ₦130 billion in statutory LG funds, prompting concerns among workers, residents and political actors in the state. Adeleke has repeatedly urged Tinubu to “protect the integrity of our democracy” by ordering the release of the withheld allocations, saying the situation is unsustainable and undermines governance at the grassroots level.
In a separate development, the Presidency is also said to have queried prominent banker Tony Elumelu over transactions involving United Bank for Africa (UBA) in relation to the broader fiscal dispute. Details of the query, including the precise nature of the allegations and Elumelu’s response, were not immediately available at the time of reporting, but the move has added another layer to the political and financial tensions surrounding the Osun LG funds impasse.