As confirmed on Sunday by the All Progressives Congress (APC), which is the opposition party in the state, the Federal Government, which it controls, has released the seized allocations to the state’s local governments.
However, the party, in a statement signed by its Director of Media and Information, Kola Olabisi, debunked claims that the funds were paid directly into the accounts of its chairmen .
The party , in a statement by its Director of Media and Information, Kola Olabisi described as ‘false and misleading’ the claims it by the leadership of the National Union of Local Government Employees (NULGE), that the funds were paid directly into the accounts of its chairmen
It said the monies were paid into the council accounts and not into private hands.
But in a swift response, the Peoples Democratic Party (PDP) , the ruling party in the state, countered sharply, accusing the APC of diverting the funds.
The party, in a statement signed by its State Chairman, Sunday Bisi, challenged the council chairmen elected under the APC to publicly disclose the account numbers and signatories into which the allocations were paid.
PDP said the APC’s admission of receipt of the allocations was “an admission of crime,” disclosing that statutory officers of the 30 local governments, as well as the state’s Accountant General and Auditor General, had no knowledge of the payments.
As the controversies thickened, an Oyo State High Court granted an interim injunction restraining UBA from disbursing the allocations.
The suit, filed by the Osun State Attorney General and the Local Government Service Commission, sought to halt payments into the disputed accounts.
Justice A. L. Akintola, ruling on the matter, barred the bank from releasing the funds, holding that any delay in granting the order “may foist on the claimants an irreversible harm.”
The case is expected to return for hearing on October 3, 2025.
Also, the Osun State House of Assembly waded in, warning that only duly authorised officers of the Local Government Service Commission are permitted signatories to council accounts.
In a statement signed by the Speaker’s Chief Press Secretary, Olamide Tiamiyu, the Assembly cautioned financial institutions against recognising unauthorised signatories, warning that such acts would be treated as aiding financial fraud.
The APC, however, fired back, accusing the Assembly of overstepping its constitutional boundaries.
In a statement on Tuesday, Olabisi insisted that the House of Assembly had no powers to supervise local government spending.
According to him, “It is an aberration for State Houses of Assembly to seek to take over financial supervision of Local Governments in whatever form and under whatever guise.”
Meanwhile, court documents reportedly revealed the actual UBA account numbers into which the allocations were paid.
The accounts, numbering 30, were allegedly opened in the names of the local councils by the APC council chairmen.
Meanwhile, in a letter dated 26th September 2025, Osun State Government’s lead counsel, Musibau Adetunbi (SAN), reminded UBA of the subsisting court order, cautioning the bank against releasing any funds pending the determination of the motion on notice.
It was gathered that the accounts were opened in the names of the council areas; while the names on the accounts only referred to the local governments without any prefix or suffix.
Also, the accounts reportedly bear a single name, which is not in compliance with the Know Your Customer (KYC) policy of opening a bank account in Nigeria, whether current or savings.
Osun Defender reported that when it contacted UBA on Tuesday for comments, the bank confirmed receipt of the inquiry and promised feedback within 48 hours.
“Please be informed that your email is currently receiving attention and we will provide feedback within 48 hours,” the bank said.
In a follow-up visit to local government secretariats in Ile-Ife, Osogbo and Ede metropolis on Tuesday morning, the paper reportedly met deserted offices.
A security officer at the gate of Ife Central Local Government Secretariat said, “We are not aware of any new development. The chairman and other officials are not around. As you can see, nobody is around presently.”
