LG funds controversy sparks account closures at UBA in Osun
By Deborah Oladejo, Osogbo –
Traders operating accounts with United Bank for Africa (UBA) on Monday converged on the bank’s branches in Osogbo, the Osun State capital, to formally request the closure of their accounts, citing concerns over the safety of their deposits amid the ongoing controversy surrounding local government allocations in the state.
The traders were observed holding duly signed account closure request letters at the bank’s branches located in the Olohunkoro and Awolowo areas of Osogbo.
The action follows allegations linking the bank to the ongoing dispute over the management of Osun local government funds, particularly claims that established procedures regarding account signatories were not adhered to.
One of the letters submitted to the bank partly read: “Account Closure Request. I wish to close my UBA account for the following reasons: The bank is at the centre of the Osun LGA imbroglio, where an estimated N230 billion belonging to Osun State has not been made available to the lawfully elected local government management. It was recently reported that a court issued arrest warrants for four top officials of the bank. The bank allegedly opened accounts for local governments without following laid-down procedures as required by law. This raises concerns that accounts could be opened in a customer’s name and handed over to a third party to operate.
“Retirees in Osun State are reportedly not being paid as a result of the bank’s action or inaction in the disbursement of local government funds to the lawful LGA management. In view of the above, I have lost confidence in the bank’s ability to safeguard my funds. I therefore request the immediate closure of my account.”
Speaking on the development, one of the traders, Morenike Abejide, expressed concern over the economic implications of the controversy, stating that it has aggravated hardship across local governments in the state.
She appealed to President Bola Tinubu to intervene and facilitate the release of the funds, noting that the situation has adversely affected economic activities at the grassroots due to reduced cash flow.
Another trader, Mr Ajani Jimoh, stated that he was unwilling to risk his savings, emphasising that safety remains the primary consideration in banking, and that any doubt in that regard justifies withdrawal.
