Osun LG workers’ salaries paid despite ₦230bn withholding – Government clarifies
The Osun State Government has moved to dispel growing public concern over local government finances, insisting that Osun LG workers’ salaries paid despite ₦230bn withholding of statutory allocations remain uninterrupted.
In a detailed clarification issued on Tuesday, the state Commissioner for Information and Public Enlightenment, Kolapo Alimi, said narratives suggesting that local government employees have gone months without salaries are inaccurate.
According to him, core salary obligations have been consistently met through state-level fiscal interventions, even as allocations meant for the 30 local councils remain inaccessible.
The statement comes amid heightened political tension surrounding the control and administration of local government structures in the state.
Salaries sustained through state intervention
Alimi stated that despite nearly a year of withheld federal allocations—estimated at approximately ₦230 billion—the administration of Governor Ademola Adeleke has continued to prioritise workers’ remuneration.
“There has been no interruption in the payment of core salaries to local government workers. Salaries are being paid fully and as and when due,” the commissioner said.
He explained that the withheld funds were originally intended to support grassroots governance, covering operational expenses, development projects, statutory allowances and worker-related benefits. However, with those resources inaccessible, the state government has reportedly deployed alternative funding streams to sustain wage payments.
The insistence that Osun LG workers’ salaries paid despite ₦230bn withholding seeks to counter what officials described as misinformation circulating within political and media spaces.
Allowances affected, not salaries
While reaffirming that salaries remain intact, Alimi acknowledged that certain allowances and supplementary entitlements have been impacted.
These payments, he said, are structurally linked to local government statutory allocations and cannot be fully funded in their absence.
He emphasised the need to distinguish between core salary obligations and additional benefits.
“The continued withholding of the ₦230 billion allocation has directly impacted the payment of certain allowances and supplementary entitlements ordinarily funded from those statutory allocations,” the statement read.
According to the government, this distinction is critical to maintaining public understanding of the fiscal realities confronting local administrations. Officials argue that conflating allowances with salaries risks misrepresenting the state’s financial management record.
The controversy over local government finances in Osun traces back to a prolonged political and legal tussle. Following the inauguration of Governor Ademola Adeleke in 2022, elected local council officials under the previous administration of Gboyega Oyetola were dissolved.
The move triggered competing claims of legitimacy, with sacked officials reportedly resisting vacating council offices. The dispute subsequently entered the judicial arena, complicating the management of local government accounts.
In September 2025, a court sitting in Oyo State restrained United Bank for Africa from disbursing or tampering with funds in accounts linked to the contested local government leadership. The injunction was issued pending the determination of a substantive motion before the court.
State officials argue that the judicial order has effectively frozen statutory allocations meant for grassroots administration, creating fiscal constraints that reverberate across council operations.
Local governments play a central role in delivering primary education, healthcare services, waste management and community-level infrastructure. The withholding of allocations—now approaching ₦230 billion, according to state estimates—has therefore raised concerns about developmental stagnation at the grassroots.
However, the state government maintains that it has shielded workers from the brunt of the crisis by ensuring that salaries remain protected.
By reiterating that Osun LG workers’ salaries paid despite ₦230bn withholding, officials aim to reassure employees and prevent labour unrest that could destabilise essential services.
Economic analysts note that absorbing local government wage obligations at the state level places additional pressure on subnational finances. States typically operate within tight revenue envelopes shaped by federal allocations, internally generated revenue and borrowing limits.
Redirecting state resources to sustain council payrolls may therefore require reprioritisation of capital expenditure or increased fiscal discipline elsewhere.
Observers say the salary controversy has acquired political overtones, given the rivalry between major parties in the state. Public narratives around unpaid wages can significantly influence voter perception, especially in a politically sensitive environment.
The administration of Ademola Adeleke has framed its intervention as evidence of responsible governance under challenging circumstances. Conversely, opposition voices have questioned the broader handling of the local government dispute.
For many workers, however, the primary concern remains income stability. Labour unions have historically responded swiftly to delays in wage payments, and the government’s repeated assurance that Osun LG workers’ salaries paid despite ₦230bn withholding seeks to forestall industrial action.
Beyond the immediate dispute, governance experts argue that transparency in local government financing is essential to prevent prolonged uncertainty. Clear communication regarding court proceedings, allocation status and payment schedules could mitigate speculation.
The state government has pledged continued updates as the legal process unfolds. Officials also reiterated commitment to lawful resolution of the dispute, stressing that funds remain tied up due to judicial directives rather than administrative refusal.
Public finance analysts emphasise that sustainable resolution will require clarity on control of council structures and the unfreezing of statutory allocations. Without access to designated funds, development projects and service delivery may remain constrained even if salaries continue to be met.
As legal proceedings continue, stakeholders await judicial determination that could unlock the disputed allocations. Until then, the state government appears committed to sustaining wage payments through internal adjustments.
The affirmation that Osun LG workers’ salaries paid despite ₦230bn withholding underscores the administration’s attempt to balance fiscal strain with labour stability.
Ultimately, the resolution of the local government control dispute will determine whether full financial normalcy returns to Osun’s grassroots institutions.
For now, state officials insist that while allowances may face delays, workers’ salaries remain protected—an assurance intended to maintain confidence amid ongoing uncertainty.
About The Author
