EXCLUSIVE: Tinubu, Governor Adeleke To Meet For Political Solution To Osun LG Funds Standoff As Presidency Reportedly Queries UBA's Elumelu

Government sources describe the planned engagement as an effort to seek a political resolution to the lingering impasse.

Amid the ongoing dispute over access to local government funds in Osun State and allegations that more than N130 billion has been withheld by the administration of Bola Tinubu, Governor Ademola Adeleke is scheduled to meet with the President.

Government sources describe the planned engagement as an effort to seek a political resolution to the lingering impasse.

The sources told SaharaReporters that attention has shifted to the forthcoming meeting between Governor Adeleke and President Tinubu.

“The meeting is currently being scheduled, although there have been efforts by some individuals within the All Progressives Congress in Osun to prevent it from taking place.

“However, the President has given the meeting the green light. The objective is to find a political solution to the impasse over the local government issues. The meeting could hold at any moment,” one of the sources said.

The development comes amid reports that the Chairman of United Bank for Africa (UBA), Tony Elumelu, was recently questioned by President Tinubu over the disbursement of Osun State local government funds held by the bank.

According to insider accounts, Elumelu met with Tinubu on Friday at the Presidential Villa. While the official agenda of the meeting was not disclosed, sources said discussions focused on the status and management of the Osun local government funds domiciled with UBA.

The meeting was reportedly convened at the instance of the President, with controversies surrounding the handling and disbursement of the funds forming a key part of the discussions.

A source told SaharaReporters that the development followed “various reports of mismanagement of the said fund, as well as court actions restraining the bank from further accessing or disbursing the funds until the matter before the court is resolved.”

Another source close to the Tinubu administration said the Presidency summoned Elumelu to address concerns surrounding the funds, particularly allegations of unauthorised disbursement.

Among the issues reportedly raised were claims that UBA may have breached local government financial regulations, a situation said to have led to the criminal prosecution of some bank officials.

Sources also indicated that the Presidency expressed concern over any access to or movement of the funds while court proceedings are ongoing to determine their legal status.

Tinubu was also said to have informed Elumelu that there is a standing directive preventing either of the two feuding parties in Osun State from accessing the funds until all pending legal matters are fully resolved.

The meeting further reportedly examined the role of former Osun State governor Gboyega Oyetola in the management of the funds, after Elumelu was said to have cited external pressure as one of the factors behind the partial disbursement.

Sources added that Elumelu used the opportunity to seek clarification from the Presidency on the appropriate course of action regarding the Osun local government funds.

Earlier, SaharaReporters reported that a Magistrate Court in Osogbo barred UBA from releasing or handling local government funds for individuals claiming to be chairmen of local government councils in Osun State, who identify themselves as members of the APC.

Delivering his ruling, Magistrate Adekanmi Adeyeba restrained UBA from “conducting any business transactions with individuals parading themselves as chairmen of local government councils in the state,” pending the conclusion of the criminal proceedings involving the bank’s top officials.

He held that “in the interest of the public and to prevent further abuse of public funds,” the bank must refrain from recognising “any individual or group of individuals for the purpose of opening, maintaining, or operating bank accounts on behalf of any local government council in Osun State.”

The court also reaffirmed the subsisting bench warrant earlier issued against senior UBA officials and directed that the criminal proceedings should continue pending final determination of the matter.