Osun Assembly vows to recover all diverted LG funds

Osun State House of Assembly has raised the alarm over what it described as the illegal handling and payment of billions of naira from Osun State local government funds by court-sacked APC chairmen and councillors.

Addressing a world press conference in Osogbo on Sunday on behalf of the Assembly, the principal officers, led by the Speaker, Rt. Hon. Adewale Egbedun, warned of harsh legal consequences, declaring that all illegally handled funds would be recovered and those involved brought to book.

The Assembly accused a first-generation bank and former governor, Gboyega Oyetola, of being the arrowheads of the alleged infractions. The House condemned and decried reports of billions of naira in Local Government funds allegedly paid out under the directive of Mr Oyetola, listing the following payments:
N25 million paid to each of the 30 illegal APC chairmen;
N12 million paid to each of the 30 illegal APC vice chairmen;
N10 million paid to each of the 332 APC councillors;
N130 million paid to selected traditional rulers in Osun State;
N13 billion paid as legal fees to Layonu & Co., lawyers representing the illegal chairmen and councillors, allegedly calculated as 15 per cent of deposited funds.

Reaffirming the illegality of the forceful occupation of council secretariats by tenure-expired politicians, the Assembly condemned what it described as the callousness of APC cronies and a minister, lamenting that “not one naira has been paid in the last 12 months as salaries 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; retirees – zero.””Even more disturbing are reports before this House that plans are allegedly underway to disburse another Fifty Billion Naira (N50bn) of LG funds for political purposes, disguised as project funds, while governance at the grassroots continues to suffer,” the House warned. It declared 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.”

The House, which particularly frowned at what it described as the illegal meddlesomeness of the Minister of Blue Economy, strongly asserted that “Mr Oyetola, a nephew to President Tinubu, has no constitutional, statutory, or moral authority to control Local Government funds, issue instructions on LG finances, influence banks, or direct security agencies in respect of LG administration.” It added 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,” the House stated.

It clarified that “politicians elected as chairmen, councillors, 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 House therefore warns 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 funds disbursed so far by UBA on the alleged illegal instructions of Mr Oyetola shall be deemed a personal gift to him and must not 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 House 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 servants continued to receive salaries despite the illegal withholding of Local Government allocations by UBA Plc on the alleged instructions of Mr Gboyega 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 the criminal diversion of funds meant for Osun State Local Government salaries,” the Assembly stated.

The Assembly, while reaffirming its oversight and legislative powers under the Constitution, maintained that financial autonomy does not invalidate Section 7 of the Constitution. It declared that “the legislative authority of the State House of Assembly, including the power to make laws regulating Local Government administration, financial controls, and accountability, is expressly recognised under Section 7 of the Constitution of the Federal Republic of Nigeria.”

“The House notes with grave concern that individuals whose elections were nullified by the courts, and whose self-awarded tenure expired on October 22, 2025, continue to unlawfully occupy Local Government secretariats and interfere with Local Government finances,” the Assembly stated, declaring that “these individuals have no legal mandate. They are not recognised by law, by the courts, or by the Constitution.”

Affirming its resolute stand for the people, the welfare of local government workers, and the Constitution, the Assembly insisted that “the law is the law. No individual is above it. No bank is immune from it. No political interest can override it. This is a democracy, and Mr Gboyega Oyetola must not be allowed to act as though he is above the law in Osun State.”

The post Osun Assembly vows to recover all diverted LG funds appeared first on Vanguard News.