The Osun State Government says it has paid local government workers their salaries, even as it withholds ₦230 billion from councils for alleged financial irregularities.
The state government has been in a long-running dispute with local councils over alleged failure to remit funds and settle debts.
The withheld funds include allocations meant for local government operations and statutory deductions for pensions and other obligations.
In a statement on Monday, Osun’s Commissioner for Local Government and Chieftaincy Affairs, Prince Dotun Oyelade, said the state made sure workers were paid despite the ongoing financial standoff.
“Local government workers in Osun State have been paid in full for January,” Oyelade said, adding that the government took the step “in the spirit of fairness and responsibility.”
Oyelade said the withheld funds will be released only after councils clear outstanding liabilities and improve accountability.
He warned that “state government will not be blackmailed by anyone,” and said councils must follow the law on financial management.
The commissioner said the government took action because many councils had allegedly failed to remit staff deductions and pension contributions to the relevant agencies.
“We owe it to the workers to ensure they are not short-changed,” he said.
The local government chairmen, however, have criticised the withholding of funds, saying it hampers service delivery at the grassroots.
A spokesperson for the Chairmen Forum said councils are willing to negotiate but called for “mutual respect and dialogue.”
Labour unions representing local government workers welcomed the salary payments, but urged both sides to find a lasting solution to the financial dispute.
The matter is expected to feature in upcoming talks between state officials and council representatives.
