The Osun State Government has accused top officials at the Central Bank of Nigeria (CBN) and the Office of the Accountant General of the Federation of planning to divert statutory allocations meant for local government areas in the state into private accounts allegedly linked to certain individuals.
In a statement issued on Wednesday and signed by the Commissioner for Local Government and Chieftaincy Affairs, Dosu Babatunde, the state government described the development as “unconstitutional, suspicious, and a breach of public finance regulations.”
The government said it was surprised to learn that there were hurried moves to release statutory allocations into personal bank accounts without due process. The move, according to the statement, appears calculated to undermine ongoing cases at the Supreme Court concerning the management of local government administration in Osun State.
The statement read, “As a government, we are of the strong contention that this is quite sad, unfortunate, and unconstitutional for these two Federal Government Agencies to conclude plans to pay Government money into private accounts. This will amount to an open violation of public finance regulations.”
Reacting swiftly to the situation, the state said it had already directed the Auditor-General for Local Governments to formally write to the CBN and introduce the recognised accounting officers for the 30 local governments, including the Heads of Local Government Administration (HLAs) and Directors of Finance.
However, the state alleged that the Osogbo branch of the CBN rejected the list. The government expressed concern that the bank might be working with associates of the former governor, Gboyega Oyetola, who allegedly submitted names without involving the proper accounting officers.
But when contacted, Mr. Abiodun Idowu, Chairman of the Association of APC-elected Local Government Chairmen in the state, denied the allegation. He stated that any funds released would go into legally recognised accounts. “We know the implications of public money going into private accounts. Maybe those who raised the allegation were not referring to us. Tell them to look somewhere else,” he said.
Still, the Osun State Government insisted the action is unlawful and accused some federal officials of acting without the consent of President Bola Tinubu or the Minister of Finance. It warned that any money paid into private accounts will not be recognised as local government funds and that legal action will follow if the situation is not corrected.
In a related statement, the Nigerian Union of Local Government Employees (NULGE), Osun State chapter, said it had obtained a letter from the Office of the Accountant-General of the Federation dated 10th June 2025. The letter, signed by Okolie Rita O., requested that local governments apply to open accounts at the Osogbo branch of the CBN, to be operated by two of the following: Council Chairmen, Treasurers, Directors of Finance and Administration, or Directors of Personnel Management.
However, the union’s state president, Dr. Nathaniel Ogungbangbe, said this instruction contradicts the legally approved signatories in Osun State. According to him, the correct signatories are the Director of Finance and Supplies, the Director of Administration and General Services, with confirmation from HLAs and council chairmen.
Ogungbangbe warned against what he described as a “grand plan” to divert public funds and called on the CBN to stick to the law. “There is a grand plan by the Central Bank of Nigeria (CBN) to pay Osun State Local Government Allocation into personal accounts of some impostors who are not Local Government Staff,” he said.
Also weighing in, Hashim Abioye, Chairman of the Osun State Independent Electoral Commission, maintained that only officials elected during the February 2025 council elections are constitutionally recognised. He noted that the election was not voided by any court and remained valid.
Abioye further accused the Attorney General of the Federation and the Inspector-General of Police of backing actions by individuals who have no legal authority over the councils. “These sacked officials have summoned the shameless boldness, even after losing gallantly in court on 13th June 2025, to still go back to the local council offices forcefully,” he said.
He alleged that these individuals were seen celebrating inappropriately in government offices and causing public disturbance. “They were sharing alcoholic drinks and grandstanding. What for?” Abioye asked.
He urged all stakeholders to stand for truth and legality, assuring residents that the commission would remain honest and transparent in defending the state’s democratic processes.
The situation remains tense, as both the state government and labour unions demand adherence to proper financial and administrative procedures, while calling on federal authorities to avoid actions that could deepen the already heated local government dispute in Osun State.
