‎Osun Assembly Sounds Alarm: Warns UBA, Oyetola, And APC Allies Over Alleged Diversion Of Local Govt Funds

The Osun State House of Assembly has raised serious concerns over the alleged illegal handling and disbursement of billions of naira from local government funds by court-nullified APC chairmen, allegedly facilitated through the influence of the Minister of Marine and Blue Economy, Mr. Gboyega Oyetola, and the United Bank for Africa (UBA).

‎Addressing a world press conference in Osogbo on Sunday, the Assembly’s principal officers, led by Speaker Rt. Hon. Adewale Egbedun, condemned reports of massive unauthorized payments from local government accounts, purportedly made under Mr. Oyetola’s directive.

‎According to the House, the following payments have been made from local government funds:

‎- N25 million to each of the 30 APC chairmen whose elections were nullified by the courts

‎- N12 million to each of the 30 APC vice chairmen

‎- N10 million to each of 332 APC councillors

‎- N130 million each to selected traditional rulers in Osun State

‎- N13 billion in legal fees to Layonu & Co., lawyers representing the nullified chairmen and councillors, calculated as 15% of deposited funds

‎The Assembly further raised alarm over alleged plans to disburse an additional N50 billion of local government funds for political purposes, disguised as project funds.

‎Reaffirming the illegality of the continued occupation of council secretariats by individuals whose tenure has expired and whose elections were nullified, the Assembly lamented that despite these massive disbursements, not a single naira has been paid in the last 12 months as salaries to local government workers.

‎”Primary school teachers—zero; nurses and other healthcare workers—zero; local government civil servants—zero; traditional rulers not favoured by Mr. Oyetola—zero; retirees—zero,” the House stated, condemning what it described as the callousness of those involved.

‎The Assembly declared that it “will not tolerate the diversion of public funds meant for salaries, healthcare, education, and community development into private hands to fund the election of a particular politician in Osun State.”

‎The House specifically warned UBA that it faces potential reputational damage and legal consequences for allegedly releasing local government funds on unauthorized instructions.

‎”The Assembly formally places on record that it has written repeatedly to banks, including UBA, that under extant Osun State laws and regulations governing local government administration, only career officers duly appointed under the Local Government Service Commission—including directors of finance and directors of administration and general services—are lawful signatories to local government accounts,” the statement clarified.

‎The Assembly emphasized that politicians elected as chairmen, councillors, or treasurers, as well as political appointees, are expressly forbidden from being signatories to local government accounts.

‎”Any bank that releases local government funds on the instructions of unauthorised persons, regardless of who issued such instructions, acts unlawfully and exposes itself and its officers to criminal liability. Illegal disbursement of public funds is fraudulent. It is not banking practice. It is not political discretion. It is a crime,” the House declared.

‎The Assembly warned that all illegally disbursed funds would be fully recovered and treated as deliberate complicity in financial crime, adding that funds already disbursed by UBA on allegedly illegal instructions cannot be deducted from Osun State local government accounts.

‎The House strongly asserted that Mr. Oyetola, despite being a nephew to President Bola Tinubu, has no constitutional, statutory, or moral authority to control local government funds, issue instructions on such funds, influence banks, or direct security agencies in matters relating to local government administration.

‎”Being related to the President confers no legal power to interfere in the affairs of Osun State local governments. Nigeria is governed by laws, not family ties,” the Assembly stated emphatically.

‎The House warned of harsh legal consequences, declaring that every illegally handled fund will be recovered and those involved will be brought to book.

‎The Assembly commended Governor Ademola Adeleke for what it described as extraordinary sacrifice over the past 12 months in ensuring that primary school teachers, nurses, other healthcare workers, and local government civil servants continued to receive salaries despite the alleged illegal withholding of local government allocations by UBA.

‎”That a state government had to shoulder this burden for 12 months is evidence of responsible leadership. However, such sacrifice must not become an excuse for criminal diversion of funds meant for the salaries of Osun State local government workers,” the Assembly stated.

‎The House reaffirmed its oversight and legislative powers under Section 7 of the Constitution of the Federal Republic of Nigeria, which expressly recognizes the authority of State Houses of Assembly to make laws regulating local government administration, financial controls, and accountability.

‎The Assembly noted with grave concern that individuals whose elections were nullified by courts and whose self-awarded tenure expired on October 22, 2025, continue to unlawfully occupy local government secretariats and interfere with local government finances.

‎”These individuals have no legal mandate. They are not recognised by law, by the courts, or by the Constitution,” the House declared.

‎The Assembly put the international community, financial regulators, and institutional partners on notice regarding UBA’s alleged role in the matter.

‎”If UBA Plc continues on this path, it risks reputational damage and legal consequences that go far beyond Osun State and Nigeria. No bank that claims global standards should be associated with the unlawful handling of public funds or the undermining of democratic institutions,” the statement warned.

‎Affirming its resolute stand for the people, the welfare of local workers, and the Constitution, the Assembly insisted: “The law is the law. No individual is above it. No bank is immune from it. No political interest can override it. This is supposed to be a democracy, where nobody is above the law and where Mr. Gboyega Oyetola should not be allowed to carry on as if he is above the law in Osun State.”

‎Signed:

‎Olamide Tiamiyu

‎Chief Press Secretary to the Speaker

‎Osun State House of Assembly

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