Osun NULGE President, Comrade Kehinde Ogungbanggbe, addressing a press conference in Osogbo on Wednesday, over alleged illegal plan by CBN to release LG funds to “illlegal chairmen”
- State Govt,NULGE warn CBN, AGF against funding ‘illegal chairmen”
Osun State Government, and the state”s chapter of the Nigeria Union of Local Government Employees (NULGE) have cautioned federal authorities over alleged plans by the Central Bank of Nigeria , CBN, to release local government funds to individuals described as impostors.
The warning, signalling the degeneration of the crisis, came against the backdrop of escalating hostility between the ruling Peoples Democratic Party, and the opposition All Progressives Congress, and their supporters over the interpretation of the latest court judgment on which party controls the state’s 30 councils.
Addressing a press conference on Wednesday in Osogbo, State President of NULGE, Comrade (Dr.) Kehinde Nathaniel Ogungbangbe, expressed deep concern over the crisis rocking the state’s local government administration.
The union leader attributed the tensions to a recent Appeal Court judgment, which he said has worsened the rift between the ruling PDP and the opposition APC.
He said, “As the situation deteriorates and security threats loom, we directed our members to stay at home, in line with the directive of the Nigeria Labour Congress (NLC), Osun State Chapter, to safeguard their lives.
“This was not an easy decision, but our members’ safety comes first.”
Ogungbangbe appealed to President Bola Ahmed Tinubu, and all stakeholders to intervene and restore calm, while commending Governor Ademola Adeleke for what he described as “maturity and leadership ingenuity” in managing the crisis.
He disclosed that NULGE had received a letter dated June 10, 2025, from the Office of the Accountant-General of the Federation AGF.
He Saud the letter, signed by Rita O. Okolie, Director of the Federation Account Department, directed the opening of accounts for the 30 local governments at the CBN Osogbo branch. It further stated that any two of the following officials — Chairman, Treasurer, Director of Finance and Administration, or Director of Personnel Management — could sign to open the accounts.
However, NULGE strongly rejected this directive, insisting that only statutory career officers — specifically, the Directors of Finance and Supplies and the Directors of Administration and General Services — are authorised to operate such accounts.
These officers, he explained, must act in conjunction with the Heads of Local Government Administration and the Council Chairmen, who counter-sign for confirmation.
“We have formally informed the Minister of Finance, the Accountant-General of the Federation, and the CBN Governor that any deviation from this legal framework is a violation of extant public finance laws”, Ogungbangbe warned.
He said, “We suspect a grand plan to divert funds into private accounts controlled by individuals who are not recognised staff of the Local Government system. This is unacceptable and must not be allowed to happen.”
He emphasized that NULGE remains committed to defending legality and will resist any act of financial malpractice or political manipulation.
As the controversy deepens, NULGE has reiterated its commitment to peace, lawfulness, and the welfare of its members. Ogungbangbe called for continued dialogue and respect for judicial processes, urging all parties to allow the courts to resolve the issues without interference.
“This is not just a political battle it is a fight for the soul of local governance in Osun State,” Ogungbangbe said. “Our members are ready to return to work, but only when their safety and the rule of law are assured.”
He also expressed appreciation to NULGE members and secretariat staff for their patience during the ongoing standoff.
Osun Govt warns CBN against throwing Osun into chaos
In a related development, the Osun State Government has also warned the Central Bank of Nigeria (CBN) and the Office of the Accountant-General of the Federation against releasing statutory local government allocations into private accounts.
Commissioner for Local Government and Chieftaincy Affairs, Hon. Dosu Babatunde, in a statement made available to journalists, described the alleged plan as “unconstitutional, illegal, and a direct violation of Nigeria’s public finance laws.”
“The attention of the state government has been drawn to a conspiracy allegedly being orchestrated between officials in the CBN and the Accountant-General’s office to divert local government funds,”
The statement read. “We have credible intelligence that allocation funds are being prepared for disbursement into private accounts belonging to individuals aligned with former Governor Gboyega Oyetola—without the involvement of the duly recognized accounting officers of Osun State local governments.”
According to the Commissioner, the State Government had previously submitted a formal letter through the Auditor-General for Local Governments, introducing the appropriate accounting officers to the CBN. However, the CBN’s Osogbo branch allegedly rejected the submission and moved forward with unauthorized arrangements.
“We call on President Bola Ahmed Tinubu to act swiftly and stop this constitutional breach,” Babatunde urged.
“This appears to be a deliberate effort to undermine cases already before the Supreme Court and to subvert the will of the people.”
He further warned that any funds paid into private accounts will not be recognized as official local government funds, and that the state government would pursue every legal remedy available to address the alleged anomaly.
