By John Dike, Osogbo
Osun State House of Assembly on Thursday warned commercial banks operating in the state, particularly the United Bank for Africa (UBA) Plc, Osogbo Branch, against processing any unauthorised financial transactions on Local Government accounts.
In a letter signed by the Speaker, Rt. Hon. Adewale Egbedun, the Assembly condemned what it described as “illegal and unconstitutional” financial instructions allegedly emanating from some local governments including Boluwaduro Local Government, authorising deductions of up to 15 percent of the September 2025 allocations in favour of private individuals.
The House emphasized that such actions lack legal backing and budgetary approval, and are in clear violation of the Osun State Public Financial Management Law, 2020, and other statutory regulations.
“Treasurers are not legally recognised signatories to Local Government accounts under extant laws.”
“Only the Local Government Chairman and the Director of Administration and General Services (DAGS) both officers of the Local Government Service Commission are legally empowered to operate these accounts,” the Speaker noted.
Referencing a House resolution passed on September 29, 2025, the Speaker reiterated that no withdrawals or deductions can be made from Local Government accounts without strict adherence to the Constitution, internal financial guidelines, and approved budgets.
The Assembly warned that any bank that processes such unauthorised instructions would be held complicit in financial misconduct, in contravention of several national laws, including:
The Money Laundering (Prevention and Prohibition) Act, 2022, the Economic and Financial Crimes Commission (EFCC) Act, the Independent Corrupt Practices and Other Related Offences Commission (ICPC) Act,and the Criminal Code Act.
The House warned of severe consequences for any institution found culpable, including: summons before the House, issuance of arrest warrants,
referral to anti-corruption agencies, blacklisting of the bank
and recommendation for removal of government patronage.
“Any instruction verbal, written, or electronic authorising the disbursement, deduction, or diversion of public funds from any Local Government account must originate from the legally designated signatories and must be covered by a budgetary provision approved by the House.”
The Assembly reminded the banks of a previously issued directive, giving them 24 hours to provide full disclosure of all Local Government accounts domiciled in their institutions. The House underscored the public interest and urgency of the matter and demanded immediate compliance.
