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

The Nigeria Labour Congress (NLC) has demanded the immediate and unconditional release of all withheld allocations meant for the lawfully elected local governments in Osun State.

In a communique issued after a joint meeting of its National Administrative Council (NAC) and Central Working Committee (CWC) held in Abeokuta, Ogun State, the NLC also called on the Attorney-General of the Federation to withdraw all “unlawful directives” issued to federal financial institutions and to stop politicizing local government autonomy.

The statement, signed by NLC President Comrade Joe Ajaero and General Secretary Comrade Emmanuel Ugboaja, strongly condemned what it described as a partisan intervention that has crippled grassroots governance in Osun State. According to the NLC, the actions have denied workers their wages and disrupted critical services, including healthcare, education, and infrastructure development.

“The CWC reaffirmed its support for genuine local government autonomy as a foundation for grassroots development, democratic participation, and accountability,” the communique stated.

It further accused the Office of the Attorney-General, the Minister of Finance, and the Central Bank of Nigeria (CBN) of colluding to deliberately withhold and divert statutory allocations owed to democratically elected local councils in Osun State—a move the NLC called a direct violation of the Nigerian Constitution, the Fiscal Responsibility Act, and a Court of Appeal judgment affirming the legitimacy of the current council leadership.

The NLC warned that failure to release the funds promptly would result in further actions to protect workers’ rights and enforce the law.

The ongoing crisis in Osun stems from a prolonged political standoff between the Peoples Democratic Party (PDP) and the All Progressives Congress (APC) over control of the 30 local government areas and one area office. The dispute has led to industrial action by the Nigeria Union of Local Government Employees (NULGE) since February and has sparked violent clashes between party supporters.