Osun Assembly flags alleged N50bn LG fund misuse, threatens legal action

By Deborah Oladejo, Osogbo –

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, allegedly carried out by All Progressives Congress (APC) chairmen with the involvement of the Minister of Blue Economy, Gboyega Oyetola, and the United Bank for Africa (UBA).

The Assembly alleged that several unlawful payments were made from local government funds, including N25 million to each of the 30 APC chairmen, N12 million to each of the 30 vice chairmen, N10 million to 332 councillors, N130 million each to selected traditional rulers, and N13 billion paid as legal fees to lawyers representing the APC chairmen and councillors—amounting to about 15 percent of deposited funds.

Addressing journalists in Osogbo on Sunday, the Speaker, Rt. Hon. Adewale Egbedun, lamented that local government workers have not been paid salaries for the past 12 months. He noted that primary school teachers, nurses, healthcare workers, civil servants, retirees, and several traditional rulers remain unpaid.

“Even more disturbing are reports before this House that plans are allegedly underway to disburse another Fifty Billion Naira (N50B) of local government funds for political purposes, disguised as project funds, while governance at the grassroots continues to suffer,” the House stated, 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.”

Egbedun warned of harsh legal consequences, saying every illegally handled fund will be recovered and those involved will be held accountable. He also cautioned that UBA faces reputational damage and claimed that Oyetola breached the law by allegedly orchestrating the illegal handling of Osun LG funds.

He insisted that the Blue Economy Minister has no constitutional or statutory authority to control or issue directives on local government finances, influence banks, or interfere in local government administration, adding that being related to the President does not confer any legal power under Nigerian law.

The Speaker reiterated that, under Osun State laws, only career officers appointed through the Local Government Service Commission are lawful signatories to local government accounts. He warned that any bank releasing funds on the instruction of unauthorised persons acts unlawfully and is criminally liable.

The House further warned UBA that all illegal disbursements of local government funds would be recovered and treated as complicity in financial crime, adding that any funds UBA has disbursed under the alleged illegal instructions of the minister were considered a gift to him and cannot be deducted from Osun LG accounts.