Osun Local Governments in Turmoil: APC-PDP Feud and Shadowy Fund Transfers Shake Grassroots Democracy

Osun State is currently grappling with a multifaceted crisis that has severely impacted local government administration. The situation has escalated since February 2025, when a contentious legal battle between the All Progressives Congress (APC) and the Peoples Democratic Party (PDP) over control of local government councils led to widespread administrative paralysis and financial mismanagement.

The Political Standoff

The crisis began on February 10, 2025, when the Court of Appeal in Akure delivered a judgment reinstating APC-elected local government chairmen and councillors who had been previously removed by the state government. However, less than two weeks later, on February 22, the state government conducted fresh local government elections, which were won by the PDP. This move was met with stiff resistance from the APC, leading to a protracted dispute over the legitimacy of the newly elected officials.

The APC contended that the Court of Appeal’s judgment nullified the PDP’s election, while the PDP maintained that the court’s decision did not invalidate their electoral process. This deadlock resulted in both parties laying claim to the control of the 30 local government councils in the state, effectively creating two parallel administrations.

Administrative and Financial Implications

The political impasse had severe repercussions on local governance. The Nigeria Labour Congress (NLC) and the Nigeria Union of Local Government Employees (NULGE) instructed workers to stay away from council secretariats due to escalating tensions. Consequently, local government operations were suspended, and essential services were disrupted.

In September 2025, the Federal Government released six months’ worth of withheld local government allocations to Osun State. However, allegations surfaced that these funds were paid into accounts controlled by sacked APC chairmen and councillors, bypassing the duly elected PDP officials. The PDP accused the APC of orchestrating this move to undermine their administration and seize control of local government finances. The APC, in turn, rejected the claims, asserting that the funds were disbursed in accordance with the Court of Appeal’s ruling.

The Boluwaduro Letter Controversy

Amidst this political turmoil, a letter surfaced, purportedly from Boluwaduro Local Government, directing the United Bank for Africa (UBA) to deduct 15% from the local government’s September  2025 allocation and credit it to the account of Layonu & Co., a private legal firm.

The letter, dated 26th September 2025, bore the official letterhead of Boluwaduro Local Government and was jointly signed and stamped by Adebayo Oyekanmi, the Executive Chairman, and Lasisi Oluwadamilola Oyebode, the Treasurer. This directive raised serious concerns about the legality and transparency of local government financial transactions. While such deductions are typically reserved for statutory obligations like taxes and pensions, the transfer of public funds to a private legal firm without clear justification is highly irregular.

Jamiu Olawumi’s Stance

In the midst of the ongoing crisis, Jamiu Babatunde Olawumi, a prominent member of the APC and former Special Adviser to Governor Adegboyega Oyetola on Education, publicly declared his refusal to participate in the controversial sharing of local government funds. He cited concerns over potential legal repercussions, stating that he was not willing to face imprisonment over the matter. This statement came amid escalating tensions between the APC and the PDP over control of the state’s 30 local government councils. The dispute intensified following a Court of Appeal ruling that reinstated APC-elected officials, which the PDP contested by conducting fresh elections. The situation has led to administrative paralysis and allegations of financial mismanagement, including claims that withheld local government allocations were diverted to accounts controlled by sacked APC officials.

Olawumi’s refusal to partake in the fund-sharing activities underscores the deep divisions within the APC and raises questions about the legality and transparency of financial transactions within local governments. His stance has been interpreted by some as an attempt to distance himself from potential legal liabilities associated with the controversial fund distribution.

Implications for Governance and Public Trust

The ongoing crisis in Osun’s local government system underscores the fragile state of grassroots democracy in Nigeria. Political interference, financial mismanagement, and administrative dysfunction have crippled the ability of local governments to effectively serve their communities.

Some public affairs analysts warn that without immediate reforms, public confidence in the local government system will continue to decline. Accountability mechanisms must be strengthened, and all financial transactions involving public funds should be made transparent to avoid perceptions of impropriety.

Conclusion

The political and administrative crisis in Osun State has exposed deep-seated issues within the local government system. The lack of coordination between the APC and PDP, coupled with allegations of financial misconduct, has eroded public trust and hindered the delivery of essential services. To restore stability and confidence in local governance, there is an urgent need for comprehensive reforms that promote transparency, accountability, and the rule of law.