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Tinubu, Adeleke to resolve Osun LG fund crisis

The presidency and Osun State government are currently moving to resolve the Osun State Local Government funds crisis.
According to the Spokesman for governor Ademola Adeleke, Olawale Rasheed, he confirmed on Sunday that President Bola Ahmed Tinubu has set up a Committee to be chaired by his Chief of Staff, RT. Hon. Femi Gbajabiamila to develop a settlement framework.

The Spokesman said, negotiation has commenced and the impasse may be resolved before the 2027 general election.
The settlement was at the instance of President Bola Tinubu, who opened peace talks with Osun State governor Ademola Adeleke, demanding an end to the crisis Osun Local Government Council funds and the All Progressives Congress, APC administration.

The Local Government funds crisis in Osun State has led to series of litigations in Court which in some cases the Court has restricted the Federal Government from releasing the funds.
A member of Ademola Adeleke’s cabinet also confirmed on Sunday that President Tinubu opened the talks when Adeleke paid a visit to the presidential villa, to present his certificate of return after the governorship election.
The official was quoted to have said Tinubu has set a micro committee to be headed by the Chief of Staff, RT. Hon. Femi Gbajabiamila to settle the financial impasse, revealing that the settlement has reached an advance and a final stage.
The official said the issue of Local Government funds in Osun was worrisome to the people, saying it is a good development now that it was about to be resolved.
“Both sides thought, let’s find a way to look at the issues and resolve them. The Presidency and the state government set up a small committee to create a framework under which all these issues would be tackled. The committee would then come up with a position.
“After the resolution, both parties would go to court and settle out of court, and the local government system would return to normal,” the official said.
According to him, the settlement was not new, but it started immediately Ademola won his second term of office.
“After the election, when we visited the President, that was the day the committee was set up, it was not as if it was yesterday. It was the President who said, ‘Let’s set up this small committee to resolve this matter that is becoming complicated,’” the source added.
Confirming the development, the governor’s spokesperson, Olawale Rasheed, said the Presidency and the state government were putting together a negotiation team to break the deadlock.
Speaking on a private radio programme in Osogbo on Wednesday, Rasheed said the talks had advanced significantly, though he said he was not aware of the details of the proposed deal because he was not part of the team.
He expressed hope that the matter would be resolved before the 2027 general elections, despite its legal and political complications.
“The local government matter is very complicated. Politically and legally, it has passed over layers and layers of complexity. Now, when you want to resolve it, it’s not a straight-jacket thing. It’s not something you just bring a hammer and make a pronouncement on because it’s so complicated,” he said.
Rasheed listed thorny issues, including the status of APC-backed council chairmen and councillors, whose tenure he said ended on October 25, 2025, and the Peoples Democratic Party (PDP) chairmen and councillors who were elected but have yet to assume office to avoid violence.
He also raised questions about the management of council funds and purchases allegedly made by APC-backed officials, stressing that these matters must be carefully addressed for any settlement to endure.
“You have the YES/NO whose non-existent tenure has lapsed since October 25, 2025. Secondly, you have the duly elected PDP chairmen and councillors who have not resumed because of the need to avoid violence.
“You have handling of money and buying of some stuff by the YES/NO chairmen. It’s so complicated.
“What the governor and the Presidency are doing is to set up a negotiation team to iron out how best we can resolve it. In fact, the negotiation is almost reaching the final stage, and the negotiation continues to resolve the matter. All this will be over before the election,” he said.























