The congress described the continued withholding of the allocations as unjustified, accusing the Federal Government of disregarding court decisions and undermining democratic governance.
The NLC Acting General Secretary, Comrade Benson Upah, stated the position in a statement issued on Tuesday, urging the Federal Government to release the funds without further delay.
“The non-release of these funds has caused considerable damage to governance at the local government council level, with collateral implications,” the statement read.
The labour union argued that there was no justification for the continued withholding of the allocations, alleging that the action was an attempt by the Federal Government to demonstrate that it was above the law.
“There is no justification whatsoever for the continued seizure of these funds other than to prove the point that the Federal Government is above the law,” Upah said.
The congress added, “The Federal Government cannot cherry-pick which decisions of courts to obey and which it will not.”
The NLC warned against what it described as intimidation and arm-twisting in a democracy, insisting that government authorities must respect judicial decisions.
It also commended the striking workers for maintaining peaceful conduct during the industrial action and urged them to sustain the approach.
“We commend the Osun workers for conducting themselves with utmost decorum in prosecuting this action, and we urge them to keep it so… always peaceful,” the statement added.
The dispute over Osun State’s local government allocations is rooted in the political and legal crisis surrounding control of the councils following the local government elections conducted in February 2025.
The crisis followed disagreements over the validity of the election and the tenure of elected council officials, with competing legal positions over which administration was constitutionally entitled to control the councils and receive their allocations.
The dispute has also renewed attention on local government financial autonomy, particularly following the Supreme Court’s July 2024 judgment affirming the financial independence of local governments and directing that allocations be paid directly to democratically elected councils.
The NLC’s intervention comes amid renewed labour pressure for the release of the withheld funds and growing concerns over the impact of the dispute on the administration of local government affairs in Osun State.
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