The Osun State House of Assembly has sounded the alarm over alleged illegal disbursements of billions of naira from local government (LG) funds, pointing fingers at sacked APC chairmen, former Governor and current Minister of Marine and Blue Economy, Gboyega Oyetola, and United Bank for Africa (UBA).
In a strongly worded press briefing led by Speaker Rt. Hon. Adewale Egbedun, the Assembly condemned what it described as orchestrated diversions, including:
– N25 million paid to each of the 30 “illegal” APC chairmen
– N12 million to each of the 30 “illegal” APC vice chairmen
– N10 million to each of the 332 APC councilors
– N130 million each to selected traditional rulers favored by Oyetola
– N13 billion in legal fees (15% of deposited funds) to Layonu and Co., lawyers for the sacked officials
The House lamented that no salaries have been paid in the past 12 months to local government workers, including primary school teachers, nurses, healthcare staff, civil servants, unfavored traditional rulers, and retirees — all listed as “zero” payments by these officials.
“Even more alarming are reports of plans to allegedly divert another N50 billion in LG funds for political purposes, disguised as project expenditures, while grassroots governance suffers,” the Assembly stated. It vowed not to tolerate the misuse of public funds meant for salaries, healthcare, education, and community development to bankroll political ambitions in the state.
The Assembly asserted that Oyetola — described as a nephew of President Bola Tinubu — has no constitutional, statutory, or moral authority to control LG funds, issue directives to banks, influence security agencies, or interfere in Osun’s local government affairs. “Nigeria is governed by laws, not family ties,” it emphasized.
Clarifying financial controls, the House noted that under Osun laws, only career officers appointed via the Local Government Service Commission (e.g., directors of finance and administration) are authorized signatories to LG accounts. Politicians, including elected chairmen, councilors, or appointees, are barred from this role.
It issued a stern warning to UBA: Any bank releasing funds on unauthorized instructions — including those allegedly from Oyetola — acts unlawfully and risks criminal liability for fraud. “All illegally disbursed funds will be recovered, and such actions treated as deliberate complicity in financial crime,” the Assembly declared. It added that funds already released on alleged illegal directives would be deemed a “personal gift” to Oyetola and not deductible from state LG accounts.
The House put UBA on notice of potential reputational damage and broader legal consequences, including from international regulators, if it continues such practices. It commended Governor Ademola Adeleke for shouldering salary payments for LG workers over the past year amid the alleged withholding and diversions, calling it evidence of responsible leadership — but stressed this must not excuse criminal misuse.
Reaffirming its oversight powers under Section 7 of the 1999 Constitution (as amended), the Assembly insisted that financial autonomy for LGs does not override state legislative authority to regulate local administration, financial controls, and accountability.
Oyetola’s Aide Rejects Allegations as Malicious Propaganda
In a swift response, Dr. Bolaji Akinola, Special Adviser to Minister Gboyega Oyetola, dismissed the Assembly’s claims as “fabricated and malicious,” aimed at distracting from the state government’s alleged failures and legal setbacks.
Akinola stressed that LGs enjoy full financial autonomy under the Constitution and the Supreme Court’s landmark July 11, 2024 judgment, which bars state interference in council affairs or funds. He reiterated that Oyetola holds no role in LG finances, has issued no directives to banks, and has not interfered in Osun councils.
He referenced a February 10, 2025 Court of Appeal judgment reinstating duly elected LG chairmen in Osun — a ruling the state government did not appeal, making it final and binding. Akinola rejected descriptions of these officials as “illegal,” calling such claims false and dishonest, and accused the Adeleke administration of filing over 12 court cases to create bottlenecks, plus sponsoring an 11-month LG workers’ strike to undermine autonomy.
He urged Nigerians, civil society, and democracy advocates to defend LG autonomy and reject attempts to circumvent the Supreme Court ruling, insisting the rule of law must prevail over political desperation.
The ongoing feud highlights deep tensions over LG control in Osun amid competing court rulings and political rivalries ahead of future elections.
