By John Dike, Osogbo
Organised Labour in Osun State has threatened to embark on an indefinite picketing of branches of United Bank for Africa (UBA) across the state over the management of local government accounts, escalating the ongoing controversy surrounding councils administration and control of their funds.
The labour movement, comprising the Nigeria Labour Congress (NLC), Trade Union Congress (TUC), and the Joint Public Service Negotiating Council (JPSNC), issued what it described as a final ultimatum to the bank, accusing it of disregarding agreements reached during previous interventions and continuing to recognize individuals it claims no longer possess legal authority to operate local government accounts.
In a letter addressed to the management of UBA, the unions alleged that the bank failed to comply with commitments reportedly made during a mediation process facilitated by the Department of State Services (DSS), which had earlier led to the suspension of a planned industrial action against the financial institution.
According to Organised Labour, the bank has continued to permit persons described as the court-sacked APC “Yes/No” local government chairmen and councillors to operate local government accounts despite existing judicial pronouncements on the matter.
The unions cited a judgment delivered on June 15, 2026, by the Federal High Court sitting in Osogbo, which they said dismissed a suit instituted by the affected officials and affirmed that tenure elongation in local government administration was unconstitutional.
Labour leaders argued that, following the court ruling, the affected officials no longer have the legal standing to act on behalf of the 30 local government councils in Osun State or exercise control over council finances.
They consequently demanded the immediate freezing of all transactions initiated by the affected officials and called on the bank to restore operations in line with what they described as constitutionally recognized local government administrations.
The labour unions further urged UBA to release all local government funds under its custody to the appropriate authorities and take necessary measures to protect public resources meant for grassroots development.
According to the unions, the funds are critical for the payment of salaries, allowances and pensions of local government workers, primary school teachers and healthcare personnel, as well as the execution of developmental projects at the grassroots level.
The labour movement warned that any continued recognition of the disputed officials as signatories to local government accounts could amount to a violation of a valid court judgment and expose the bank to potential legal consequences
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As part of resolutions reached by labour leaders, all UBA branches within Osun State may be subjected to indefinite picketing if the bank fails to comply with the demands contained in the ultimatum.
The unions also directed workers, pensioners and public servants across the state to consider closing their personal accounts with the bank and transfer their banking activities to alternative financial institutions.
In addition, ministries, departments and agencies of government, as well as local government councils, were urged to move their official accounts and payroll operations away from UBA pending the resolution of the dispute.
Labour leaders maintained that the proposed industrial action is aimed at protecting public funds and ensuring compliance with court decisions relating to local government administration in the state.
They stressed that the action would remain in force until the bank ceases what they described as hostile operations regarding local government funds and aligns its activities with the legal position established by the courts.
The development represents the latest chapter in the protracted political and legal dispute surrounding local government administration in Osun State, a matter that has continued to generate intense debate among political stakeholders, labour unions and government officials.
As of the time of filing this report, UBA had not publicly responded to the latest ultimatum issued by Organised Labour.
