Osun Assembly Alleges Diversion Of N50Billion LG Funds By Sacked APC Chairmen, Accuses Ex-Gov Oyetola, UBA

The Assembly cautioned that UBA faced reputational damage, while alleging that Mr Oyetola “breached the law by orchestrating illegal handling of Osun LG funds.”

The Osun State House of Assembly has raised the alarm over what it described as the illegal handling and diversion of billions of naira belonging to local governments in the state by court-sacked All Progressives Congress (APC) chairmen, allegedly facilitated by the Minister of Blue Economy, Mr Gboyega Oyetola, and the United Bank for Africa (UBA).

The Assembly alleged that about ₦50 billion in local government funds had been illegally disbursed, while local government workers across the state continue to endure unpaid salaries and prolonged neglect.

In a statement dated February 1, 2026, the House condemned what it called “illegal payments and handling of billions of naira from Osun local government fund” by the sacked chairmen, describing the situation as a grave violation of the law and a betrayal of grassroots governance.

The statement was signed by Olamide Tiamiyu, Chief Press Secretary to the Speaker, Osun State House of Assembly.

According to the Assembly, payments allegedly made under the directive of Mr Oyetola included “₦25m payment to each of the 30 illegal APC chairmen; ₦12m payment to each of the 30 illegal APC vice chairmen; ₦10m payment to each of the 332 APC councillors; ₦130m each to selected traditional rulers in Osun State; and ₦13bn legal fees payment to Layonu and Co., lawyers representing the illegal chairmen and councillors as 15% of deposited funds.”

Reaffirming the alleged illegality of the forceful occupation of council secretariats by politicians whose tenure had expired, the Assembly lamented that despite these alleged payments, “not one naira has been paid in the last 12 months as salaries of local workers by these illegal APC chairmen.”

It listed unpaid workers to include “primary school teachers – zero; nurses and other healthcare workers – zero; local government civil servants – zero; traditional rulers not favoured by Gboyega Oyetola – zero; retirees – zero.”

The lawmakers further alerted the public to what they described as fresh plans to divert more funds, stating, “Even more disturbing are reports before this House that plans are allegedly underway to disburse another Fifty Billion Naira (N50B) of LG funds for political purposes, disguised as project funds, while governance at the grassroots continue to suffer.”

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.”

Addressing a world press conference in Osogbo on Sunday, principal officers of the House led by the Speaker, Rt. Hon. Adewale Egbedun, warned that all illegally handled funds would be recovered and that those involved would face legal consequences.

The Assembly cautioned that UBA faced reputational damage, while alleging that Mr Oyetola “breached the law by orchestrating illegal handling of Osun LG funds.”

Frowning on what it described as the “illegal meddlesomeness” of the Blue Economy Minister, the House asserted that “Mr Oyetola, a nephew to President Tinubu, has no constitutional, statutory, or moral authority to control Local Governments funds, issue instructions on LG funds, influence banks, or direct security agencies in respect of LG administration.”

It added that “being related to the President confers no legal power to interfere in the affairs of Osun State Local Governments as Nigeria is governed by laws, not family ties.”

The Assembly disclosed that it had formally warned banks, including UBA, stressing 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 LG accounts.”

It clarified that “politicians elected as chairmen, councillors, treasurers, or political appointees are forbidden from being signatories to LG accounts.”

According to the House, “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,” stressing that “illegal disbursement of public funds is fraudulent. It is not banking practice. It is not political discretion. It is a crime.”

The Assembly warned UBA “in very clear terms” that all illegal disbursements would be recovered and treated as “deliberate complicity in a financial crime,” adding that “all the funds that UBA has disbursed so far with the alleged illegal instructions of Mr Gboyega Oyetola is a gift to him and cannot be deducted from Osun State LG accounts.”

It further placed the international community and financial regulators on notice, stating that if UBA continued on the same path, it risked “reputational damage and legal consequences that go far beyond Osun State and Nigeria.”

The House commended Governor Ademola Adeleke for what it described as an “extraordinary sacrifice” in ensuring payment of salaries to teachers, healthcare workers and local government staff over the past 12 months, despite alleged withholding of local government allocations.

While acknowledging the governor’s effort, the Assembly warned that such sacrifice “must not become an excuse for criminal diversion of funds meant for salaries of Osun State Local Governments.”

Reaffirming its constitutional powers, the Assembly maintained that “financial autonomy does not invalidate Section 7 of the Constitution,” adding that the authority of State Houses of Assembly to regulate local government administration “is expressly recognised under Section 7 of the Constitution of the Federal Republic of Nigeria.”

The lawmakers also expressed concern that individuals whose elections were nullified and whose self-awarded tenure expired on October 22, 2025, were still occupying council secretariats.

“These individuals have no legal mandate; they are not recognised by law, by the courts, or by the Constitution,” the Assembly said.

The Assembly concluded by insisting that “the law is the law; no individual is above it; no bank is immune from it; no political interest can override it,” stressing that democracy demands that “nobody is above the law.”