The Nigeria Labour Congress (NLC) in Osun State has declared a three-day strike over the continued withholding of statutory allocations meant for local government councils in the state.
The union announced the industrial action in a statement reported by the News Agency of Nigeria (NAN).
The strike followed the expiration of a seven-day ultimatum issued to the Federal Government and the Osun State Government to resolve the dispute over the funds.
NLC begins three-day strike over Osun allocations
The strike is a sympathy action in support of the Nigeria Union of Local Government Employees (NULGE), Osun State Council, whose members have been affected by the prolonged dispute over access to local government allocations.
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In a statement jointly signed by the NLC State Chairperson, Christopher Arapasopo, and its Secretary, Victor Amusan, the congress said the decision followed the failure of both levels of government to address the issues raised in its ultimatum.
- “ Government offices in Osun, were on Monday shut as workers embark on a three-day strike as directed by the state chapter of the Nigeria Labour Congress (NLC) on Sunday.
- “The News Agency of Nigeria (NAN) reports that the gates to the Osun Government Secretariat and the state House of Assembly in Osogbo, were under lock with no worker or business activities ongoing in the premises,” the NAN report read in part.
The NLC said it had exhausted all reasonable avenues to resolve the dispute before directing its affiliate unions across the state to join the action. The decision followed resolutions reached at an emergency meeting of the union’s State Executive Council (SEC) on October 28, 2026.
The congress directed affiliate unions to notify their members in writing and ensure compliance across their workplaces. It also warned that unions found deliberately undermining the directive would face disciplinary action under its provisions.
The strike began at midnight on Sunday, November 8, and is scheduled to end at midnight on Wednesday, November 11, 2026.
Osun allocation dispute dates back to 2025
The dispute over local government allocations in Osun follows the Supreme Court’s July 2024 judgment granting financial autonomy to Nigeria’s 774 local government councils.
- The apex court directed that allocations due to local governments from the Federation Account be paid directly into their accounts rather than being controlled by state governments. The ruling was intended to strengthen the councils’ financial independence and give them control over resources meant for grassroots development.
- However, Osun became embroiled in a prolonged dispute over the control of its 30 local government councils and the release of their statutory allocations following disagreements over the legitimacy of council administrations elected in February 2025.
The disagreement led to legal proceedings between the Osun State Government and the Federal Government over the withheld funds.
- In December 2025, the Supreme Court struck out the state’s suit on grounds relating to the state Attorney-General’s authority to institute the case on behalf of the councils.
The dispute over the councils’ administration and access to their allocations has continued, with local government workers affected by the prolonged disagreement. The latest NLC strike is intended to support NULGE members amid the unresolved situation.
Local Government allocations rise to N4.3 trillion
Nigeria’s 774 local governments received a total net allocation of N4.3 trillion from the Federation Account between January and August 2026, according to data compiled by Nairalytics, the research arm of Nairametrics.
- On an annualised basis, local government allocations are projected to reach N6.5 trillion in 2026, representing a 22.7% increase on the N5.3 trillion recorded in 2025.
- In 2022, the 774 councils received N2.01 trillion, rising to N3.76 trillion in 2023 following the removal of petrol subsidies and the unification of exchange rates.
- The ten local governments with the highest allocations between January and August 2026 were all in Lagos State. The state’s 20 councils collectively received N404.7 billion, accounting for 9.3% of total net allocations to local governments.
- In 2022, Lagos councils received a combined N146.39 billion, or 7.2% of total payments, with 18 of the top 20 recipients located in the state.
The allocation formula is based on five factors: equal distribution (40%), population (30%), landmass and terrain (10%), internally generated revenue (10%), and social development indicators covering education, health and water (10%).
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