“Osun Assembly Threatens to Sue AGF, CBN Over Alleged Plot to Divert LG Funds”
The Osun State House of Assembly has issued a strong warning to the Accountant-General of the Federation (AGF) and the Central Bank of Nigeria (CBN), threatening legal action if local government (LG) funds for the state are paid into unauthorized accounts.
This warning follows weeks of tension over the control of local councils in the state, a crisis that has effectively shut down LG secretariats since February 2025 due to political rivalry between officials elected under the All Progressives Congress (APC) and the Peoples Democratic Party (PDP).
According to the Osun State Government, represented by the Commissioner for Local Government and Chieftaincy Affairs, Dosu Babatunde, and the state chapter of the Nigeria Union of Local Government Employees (NULGE), led by Dr. Kehinde Ogungbangbe, there are concerns that federal authorities may be attempting to channel withheld LG funds to APC-affiliated council officials—contrary to legal procedures.
During its plenary on Thursday, the Osun Assembly, led by Speaker Wale Egbedun, declared that any such move would be unconstitutional and a clear diversion of public funds. Egbedun read the resolution of the House, stating:
“Only duly appointed career officers—specifically the Director of Finance and the Director of Administration and General Services—are legally recognized as signatories to local government accounts, in accordance with Section 14.0 of the 2025 Guidelines for the Administration of Local Government Areas in Osun State.”
He further noted that any bank transactions must be confirmed and endorsed by both the Head of Local Government Administration and the Council Chairman, as stipulated by law.
“Any attempt to substitute these officers with unauthorized persons is not only unlawful but also constitutes an attempt to divert public funds,” Egbedun warned. “This House will take all lawful steps to resist, report, and reverse such infractions.”
The Assembly demanded that the AGF and the Minister of Finance immediately direct the CBN to release all outstanding allocations only into the legally recognized LG accounts. Any deviation, the lawmakers warned, would face legislative, legal, and constitutional resistance.
“This Honourable House pledges to enforce these resolutions through legal, legislative, and constitutional means—including litigation—to protect the integrity of local government funds and to ensure the proper implementation of local government financial autonomy,” Egbedun stated.
He also reaffirmed the Assembly’s position that only democratically elected council officials from the February 2025 elections are constitutionally recognized to administer LG affairs in the state. He cited the Federal High Court’s judgment nullifying the October 15, 2022, council polls as still valid and enforceable.
The standoff underscores a deeper constitutional debate about local government autonomy and federal control over state financial systems—one that may soon be tested in court if the tensions escalate further.
