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NLC Demands Immediate Release of Osun LG Funds, Warns of Action Over ‘Unlawful Withholding’

Labour Body Accuses AGF, Finance Minister, CBN of Sabotaging Grassroots Governance, Threatens Protest

The Nigeria Labour Congress (NLC) has demanded the immediate release of all withheld statutory allocations belonging to democratically elected local governments in Osun State. In a communique issued after its National Administrative Council and Central Working Committee meeting in Abeokuta, the labor union strongly condemned what it described as unlawful interference by federal authorities in local government administration.

The NLC leadership, led by her President, Joe Ajaero and General Secretary Emmanuel Ugboaja, accused the Attorney-General of the Federation, Finance Minister and Central Bank of Nigeria of colluding to withhold funds meant for Osun’s local governments. The labor body argued this action violates both constitutional provisions and a Court of Appeal judgment that affirmed the legitimacy of the current local government leadership in the state.

According to the communique, the withholding of these funds has severely impacted grassroots governance, leaving local workers unpaid and crippling essential services including primary healthcare, education and infrastructure development. The NLC warned that failure to release the funds within a reasonable timeframe would force the union to take necessary actions to protect workers’ rights and ensure compliance with the law.

The labor congress reaffirmed its commitment to genuine local government autonomy as fundamental to grassroots development and democratic participation. It called on all stakeholders involved in constitutional review processes to incorporate provisions that would safeguard the financial and administrative independence of local governments across Nigeria.

The NLC’s intervention comes amid growing tensions between Osun State and federal authorities over the control of local government funds. While the Presidency has yet to respond to the latest demands, political observers suggest the standoff may test the limits of Nigeria’s federal structure and the autonomy of subnational governments.

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