Osun Assembly Warns  Oyetola, APC Cronies over Diversion of  LG Funds

Yinka Kolawole in Osogbo

The Osun State House of Assembly has raised the alarm over illegal payments and handling of billions of naira from the state local government fund by court-sacked APC chairmen through the alleged machinations of the Blue Economy Minister, Gboyega Oyetola, and the United Bank for Africa (UBA).

The Assembly condemned reports of billions of naira of local government funds being paid out under the alleged directive of Oyetola, “such  as the N25 million payment to each of the 30 illegal APC chairmen; N12million payment to each of the 30 illegal APC Vice Chairmen, and N10million payment to each of the 332 APC councilors.

Others are N130million each to selected traditional rulers in Osun State, N13 billion legal fees payment to Layonu and co, lawyers representing the illegal chairmen and councilors, as 15 percent of deposited funds.

Reaffirming the illegality of forceful occupation of council secretariats by tenure-less politicians, the Assembly condemned the ‘callousness of the APC cronies and the minister’, lamenting that “not one naira has been paid in the last 12 months as salaries of local workers by these illegal APC chairmen: primary school teachers  –  zero nurses and other healthcare workers – zero; local government civil servants  -zero; traditional rulers not favoured by Gboyega Oyetola-zero; and retirees- zero.

“Even more disturbing are reports before this Assembly that plans are allegedly underway to disburse another N50 billion of LG funds for political purposes, disguised as project funds, while governance at the grassroots continue to suffer,” the Assembly alerted the public, declaring 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 press conference in Osogbo on behalf of the Assembly yesterday, the principal officers, led by the Assembly Speaker, Rt. Hon.  Adewale Egbedun warned of harsh legal consequences, as every illegally handled fund will be recovered and those involved will be brought to book, warning that UBA faces reputational damage, and declaring that Mr. Oyetola breached the law by orchestrating illegal handling of Osun State LG funds.

The Assembly,  which particularly frowned at illegal meddlesomeness of the blue economy minister strongly asserted that “Mr Oyetola, a nephew to President Bola 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, adding 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 formally places on record that it has written repeatedly to banks, including the United Bank for Africa Plc (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 LG accounts,” clarifying that “politicians elected as chairmen, councilors, treasurers, or political appointees are forbidden from being signatories to LG 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 Assembly, therefore, warns the UBA in very clear terms that all illegal disbursements of Osun State LG funds, whether purportedly authorised by Mr Gboyega Oyetola or any other individual, will be fully recovered and treated as deliberate complicity in a financial crime. All the funds that UBA has disbursed so far, with the alleged illegal instructions of Oyetola is a gift to him and cannot be deducted from Osun State LG accounts.

“The international community, financial regulators, and institutional partners are hereby put on notice. 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 Assembly commends the governor of Osun State for the extraordinary sacrifice made over the past 12 months in ensuring that primary school teachers, nurses, other healthcare workers, and local government civil servantscontinue to receive salaries despite the illegal withholding of local government allocations by UBA Plc on the alleged instructions of Oyetola. 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 salaries of Osun State local governments, the Assembly posited.

The Assembly, which reaffirmed its oversight and legalisation powers based on the constitution, affirmed that financial autonomy does not invalidate Section 7 of the constitution, declaring that “the Assembly legislative authority, or the power of the state House of Assemblies to make laws regulating local government administration, financial controls, and accountability, are expressly recognised under Section 7 of the Constitution of the Federal Republic of Nigeria.

Meanwhile,  Oyetola, has been emphatically exonerated from unfounded allegations levelled by the Osun State House of Assembly, as his Special Adviser, Dr Bolaji Akinola, described the Assembly’s claims as fabricated and malicious.

Akinola reaffirmed that all local governments in Nigeria have financial autonomy, and are beyond the control of any person or entity, including the state government.

Reacting to a press release issued by the Speaker of the Osun State House of Assembly, Adewale Egbedun,  Akinola said the attempt to link Oyetola to the administration or disbursement of local government funds was reckless propaganda designed to distract the public from the state government’s own failures and ongoing legal battles.

He  stressed that the minister has no constitutional or statutory role in local government finance and has neither issued directives to banks nor interfered in the running of local councils.

Akinola stated that the press statement attributed to Egbedun merely recycled the same discredited narratives earlier pushed by Governor Ademola Adeleke, describing them as a desperate attempt to unlawfully reassert state control over local government funds in defiance of binding court judgments.

According to him, the Osun State Government and the State Assembly are uncomfortable with the reality that local governments have full financial autonomy protected by the Constitution and the Supreme Court.

He pointed out that the Supreme Court judgment delivered on 11 July 2024 unequivocally granted full financial autonomy to all local governments in Nigeria, affirming their independence and expressly barring state governors from interfering in their affairs or hijacking their funds.

He said the judgment was clear, final and incapable of being overturned by press releases or political threats.

Akinola also recalled that a valid and subsisting judgment of the Court of Appeal delivered on 10 February 2025 reinstated the duly elected local government chairmen in Osun State. He emphasised that the Osun State Government chose not to appeal the judgment, making it final, binding and enforceable in law. By that decision, the reinstated chairmen are lawfully entitled to administer their councils, a fact he said the state government has persistently but unsuccessfully sought to undermine.

He dismissed as false and intellectually dishonest the repeated description of the chairmen as “illegal”, stressing that they were duly elected, duly reinstated by a superior court of record and remain fully protected by binding judicial pronouncements. He said no amount of political rhetoric can nullify or wish away those judgments.

He said the Osun State Government has instituted no fewer than 12 separate court cases on the matter, thereby creating administrative bottlenecks and for which the government must now wait for judicial outcomes rather than resorting to propaganda.

He further accused the Adeleke administration of instigating and sponsoring an eleven-month strike by local government workers, thereby paralysing the councils in an attempt to frustrate the autonomous functioning of the councils and create a false narrative.

He asserted that the local governments have full authority to administer their funds without recourse to Governor Ademola Adeleke or the Osun State House of Assembly, and they have their own duly elected councillors who constitutionally form the legislative arm of local government administration.

Akinola strongly condemned what he described as deliberate and calculated misinformation being pushed into the public domain by the Speaker of the House, accusing him of misrepresenting settled legal issues to mislead the public.

He also cautioned Egbedun to exercise restraint in his public utterances, particularly against making reckless and insulting remarks against the President of the Federal Republic of Nigeria, His Excellency President Bola Ahmed Tinubu, warning that public office does not grant immunity from responsibility or consequences.

He called on Nigerians, civil society organisations and all supporters of constitutional democracy to stand in defence of local government autonomy and to condemn ongoing attempts by the Osun State Government and House of Assembly to circumvent the Supreme Court judgment of 11 July 2024, insisting that the rule of law must prevail over political desperation.