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Tag: Osun LG funds

  • Osun LG funds: Court extends account freezing order till October 9

    Osun LG funds: Court extends account freezing order till October 9

    An Oyo State High Court sitting in Ibadan has extended its Order of Interim Injunction against the United Bank for Africa (UBA), maintaining a no-debit restriction on 30 bank accounts into which withheld Osun State local government allocations were paid by the Central Bank of Nigeria (CBN).

    Justice Ladiran Akintola, in a ruling yesterday, extended the Order after hearing submissions from counsels present in court.

    He explained that the extension was necessary to allow all parties in the suit No. 1/1149/2025, the Attorney-General of Osun State, the Osun State Local Government Service Commission, and United Bank for Africa Plc, to enjoy fair hearing.

    Counsel to UBA Plc was absent, but counsel to the court-sacked APC council chairmen, led by Kazeem Gbadamosi, SAN, who had just filed an application for joinder, was present.

    However, counsel to the plaintiffs, Musibau Adetunmbi, SAN, argued that he needed time to study the two applications filed by the ex-chairmen’s counsel.

    He explained that the application for joinder and another one challenging the court’s territorial jurisdiction were filed on Thursday and Friday respectively.

    Adetunmbi, while citing points of law, insisted that the ex-APC council chairmen lacked the locus standi to challenge the court’s jurisdiction.

    According to him, the ex-LG chairmen remained strangers to the case since their application for joinder had not yet been decided upon by the court.

    On the need for extension of the interim order, Adetunmbi said: “I received the two applications yesterday (Thursday) and today (Friday). I will need time to study them as well as reply on points of law.”

    But counsel to the former APC local government chairmen and councillors faulted the description of his clients as strangers, arguing that they were directly affected by the court’s Interim Injunction of 26 September, 2025.

    He contended that under the law, his clients had the right to be joined in the suit.

    Gbadamosi, in the application filed on 2 October, 2025, also challenged the territorial jurisdiction of the court to hear the matter.

    Citing relevant authorities, he argued: “The court has no power in respect of a case in which its jurisdiction is being challenged to extend the order of life span that had expired.”

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    At the court sitting in Ibadan yesterday, further arguments were presented in the form of a further affidavit deposed to by a senior personnel of one of the 30 local government councils.

    In her deposition, Mrs. Aluko Rachael Abidemi, Head of Local Government Administration in Boluwaduro Local Government, revealed that certain individuals were making attempts to siphon council funds in defiance of a subsisting court order.

    She cited an undated letter addressed to UBA by two individuals—Mr. Adebayo Oyekanmi and Mr. Lasisi Gbadebo Oyebode—who claimed to be Chairman and Treasurer of Boluwaduro Local Government.

    In the letter, they instructed the bank to deduct 15 per cent of the statutory allocation and pay it into the account of a private law firm with UBA.

    Mrs. Abidemi, however, informed the court that the said individuals had no legal authority to make such instructions. She stressed that Mr. Oyebode was neither a staff of Boluwaduro Local Government nor its Treasurer, as the position of “Treasurer” does not exist in Osun’s local government structure.

    According to her, by the 2025 Guidelines for Local Government Administration in the state, only the Director of Finance and the Director of Administration & General Services are recognised as signatories to local government accounts.

    She also identified the current officers holding those positions and tendered exhibits to confirm their status.

    The claimants maintained that the matter of who the legitimate chairmen of the councils are remains sub judice before the Supreme Court in Suit No. SC/CV/773/2025, and warned that disbursing the funds under the present circumstances would undermine justice.

    Speaking with reporters after the sitting, counsel to the Attorney-General of Osun State, Adetunmbi (SAN), disclosed that a related case on the funds was already before the Supreme Court and had been fixed for hearing on 7 October.

    On yesterday’s ruling, he explained: “The crux of the matter is to safeguard the money in issue pending the Supreme Court’s determination on Tuesday, 7 October, 2025.

    “Our contention is that even those who paid the money knew the matter was already before the court. They should have respected the Supreme Court by holding on to the money.

    “Let the Supreme Court speak, everybody will be happy, but for you to pay just like that is not acceptable.

    “As I earlier informed the court, there is a letter directing that 15% of the withheld funds from March to September — running into billions of naira — should be paid as legal fees to one individual.

    “In what manner? By what procedure? Without this preservation order, the rest of the money would have been gone by now.”

    Commenting on the newly filed applications, he added: “They just served us with two applications. One was filed today, the other yesterday. I need time to react.

    “The court has extended the Interim Injunction for the preservation of the disputed funds.”

    On the joinder application, the Attorney-General maintained: “We are going to oppose the joinder because nothing concerns them with this case.”

  • Osun LGs: ‘Yes/No’ and the ‘Sit-at-home’ conundrum

    Osun LGs: ‘Yes/No’ and the ‘Sit-at-home’ conundrum

    The political developments in Osun State provide a case in point that lays bare the clear trend in Nigeria’s democracy. Whichever side of the ideological fence one may be tempted to stand on, these events have established, beyond a shadow of a doubt, that we are contending with the maggot of a deformed democracy.

    Tragically, a century after its first elections in the Lagos and Calabar Colonies, Nigeria is still wallowing in the cesspool of flawed democratic norms. This is especially true concerning local government polls.

    In the imbroglios and endless claims and counter-claims about the Osun State crisis, the essential political debate is missing two key elements: the conditions of the people and the impact of the impasse on economic development. Local governments should be effective, as they have a direct bearing on daily lives and the economy as a whole. Citizens rely on them for vital permits and essential services.

    It is characteristic of the lack of interest in governance that no one has performed a Cost-Benefit Analysis (CBA) – including the opportunity cost – of shutting down the local governments in a state. Obviously, the concept of development no longer has any meaning. This is a shame because local governments have an integral input in primary education, primary healthcare, and social welfare. Consequently, what’s happening in Osun is in contradistinction to any known conventional definition of development.

    Read Also: Osun LG funds: Court extends account freezing order till October 9

    Although the matter is, to an extent, subjudice, it is imperative that the warring parties extend the limit of their imagination and find a democratic compromise or sign a ceasefire agreement to immediately revitalize the local governments. Allowing this political combat to continue has a direct, negative impact on the daily lives of citizens and, if not contained swiftly, risks becoming an existential crisis for local governance. The immediate focus must be on political resolution to restore the essential services that local government provides.

    We have gone beyond game-playing and must now focus intently on the human consequences of this crisis. Any investor contemplating a commitment in Osun State will seriously consider the detrimental impact of shutting down the local governments on his or her venture. An investor cannot deal with the state government in isolation; he or she faces unacceptable risks, especially since he or she must also engage with the local governments for vital approvals and operations.

    This present back and forth cannot be the way to attract investments, let alone heighten economic activities in the state. Something has to be done immediately!

    May the Lamb of God, who takes away the sin of the world, grant us peace in Nigeria!

  • Court extends order freezing of Osun LG funds till October 9

    Court extends order freezing of Osun LG funds till October 9

    An Oyo State High Court sitting in Ibadan has extended its Interim Injunction against the United Bank for Africa (UBA), sustaining the no-debit restriction placed on 30 bank accounts into which withheld Osun State local government allocations were lodged by the Central Bank of Nigeria (CBN).

    Justice Ladiran Akintola, in his ruling on Friday, said the extension was necessary to ensure fair hearing for all parties in the suit No. 1/1149/2025: the Attorney-General of Osun State, the Osun State Local Government Service Commission, and United Bank for Africa Plc.

    While counsel to UBA Plc was absent, lawyers representing the court-sacked APC council chairmen, led by Kazeem Gbadamosi, SAN, were present, having just filed an application for joinder.

    Counsel to the plaintiffs, Musibau Adetunmbi, SAN, however, told the court that he required time to review the two applications filed by the ex-chairmen’s counsel.

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    He explained that the application for joinder and another one challenging the court’s territorial jurisdiction were filed on Thursday and Friday respectively.

    Adetunmbi, while citing points of law, insisted that the ex-APC council chairmen lacked the locus standi to challenge the court’s jurisdiction.

    According to him, the ex-LG chairmen remained strangers to the case since their application for joinder had not yet been decided upon by the court.

    On the need for extension of the interim order, Adetunmbi said: “I received the two applications yesterday (Thursday) and today (Friday). I will need time to study them as well as reply on points of law.”

    But counsel to the former APC local government chairmen and councillors faulted the description of his clients as strangers, arguing that they were directly affected by the court’s Interim Injunction of 26 September 2025.

    He contended that, under the law, his clients had the right to be joined in the suit.

    Gbadamosi, in the application filed on 2 October 2025, also challenged the territorial jurisdiction of the court to hear the matter.

    Citing relevant authorities, he argued: “The court has no power in respect of a case in which its jurisdiction is being challenged to extend the order of life span that had expired.”

    At the court sitting in Ibadan on Friday, further arguments were presented in the form of a further affidavit deposed to by a senior personnel of one of the 30 local government councils.

    In her deposition, Mrs. Aluko Rachael Abidemi, Head of Local Government Administration in Boluwaduro Local Government, revealed that certain individuals were making attempts to siphon council funds in defiance of a subsisting court order.

    She cited an undated letter addressed to UBA by two individuals—Mr. Adebayo Oyekanmi and Mr. Lasisi Gbadebo Oyebode—who claimed to be Chairman and Treasurer of Boluwaduro Local Government. In the letter, they instructed the bank to deduct 15 percent of the statutory allocation and pay it into the account of a private law firm with UBA.

    Mrs. Abidemi, however, informed the court that the said individuals had no legal authority to make such instructions. She stressed that Mr. Oyebode was neither a staff of Boluwaduro Local Government nor its Treasurer, as the position of “Treasurer” does not exist in Osun’s local government structure. 

    According to her, by the 2025 Guidelines for Local Government Administration in the state, only the Director of Finance and the Director of Administration & General Services are recognised as signatories to local government accounts. She also identified the current officers holding those positions and tendered exhibits to confirm their status.

    The claimants maintained that the matter of who the legitimate chairmen of the councils are remains sub judice before the Supreme Court in Suit No. SC/CV/773/2025, and warned that disbursing the funds under the present circumstances would undermine justice. 

    Speaking with reporters after the sitting, counsel to the Attorney-General of Osun State, Adetunmbi (SAN), disclosed that a related case on the funds is already before the Supreme Court and has been fixed for hearing on 7 October.

    On Friday’s ruling, he explained: “The crux of the matter is to safeguard the money in issue pending the Supreme Court’s determination on Tuesday, 7 October 2025.

    “Our contention is that even those who paid the money knew the matter was already before the court. They should have respected the Supreme Court by holding on to the money.

    “Let the Supreme Court speak, everybody will be happy, but for you to pay just like that is not acceptable.

    “As I earlier informed the court, there is a letter directing that 15% of the withheld funds from March to September — running into billions of naira — should be paid as legal fees to one individual.

    “In what manner? By what procedure? Without this preservation order, the rest of the money would have been gone by now.”

    Commenting on the newly filed applications, he added, “They just served us with two applications. One was filed today, the other yesterday. I need time to react. The court has extended the Interim Injunction for the preservation of the disputed funds.”

    On the joinder application, the Attorney-General maintained, “We are going to oppose the joinder because nothing concerns them with this case.”

  • Osun LG funds: Abuja court plans hearing of all pending applications for September 22

    Osun LG funds: Abuja court plans hearing of all pending applications for September 22

    A Federal High Court in Abuja has scheduled a hearing for September 22 in the suit filed by the Osun state government over the alleged refusal of the Federal Government to release the state’s Local Government allocation.

    Justice Emeka Nwite chose the date at Monday’s proceedings after lawyers to the parties identified the various applications filed, which they said were pending before the court.

    At the mention of the case, Musibau Adetunbi (SAN), who represented the Attorney General of Osun State, Oluwole Jimi-Bada, told the court that his client filed some motions, which have been served on the defendants.

    Adetunbi said the first is challenging the decision of the court’s Chief Judge to transfer the case from the Osogbo division of the court to Abuja.

    He said the second is for the discontinuance of the case against the Attorney General of the Federation (AGF), who is listed as the third defendant in the case.

    The plaintiff stated, in the second motion, that “sequel to the affidavit of urgency filed by the AGF on August 13, it became obvious that he is willing and at the verge of paying the allocation of the Constituent Local Government Councils of the plaintiff’s state to the illegal and sacked APC Chairmen and councilors.

    “Consequent on the above, the plaintiff is desirous of initiating and prosecuting a fresh suit against the third defendant (AGF) at the Supreme Court of Nigeria.

    “Some of the facts, questions, and issues to be tabled at the apex court against the AGF would be identical to the facts, questions, and issues before the trial court in the instant suit, and hence, the need to discontinue the suit against him.”

    In the motion filed on August 26, the plaintiff wants the court to issue an order staying further proceedings in the suit pending the hearing and determination of another suit it filed before the Supreme Court, asked: SC/CV/773/2025, which has the AGF as the sole defendant.

    The plaintiff stated that it filed the motion because “the AGF is not willing to obey, abide by or comply with a valid and subsisting decision of the Court of Appeal but rather caused an affidavit of urgency to be filed before the court on August 13.”

    “The AGF’s letter of August 26 and the affidavit of urgency show that he is willing and at the verge of paying the allocation of the Constituents Local Government Councils of the plaintiff state to illegal and sacked APC chairmen and councilors.”

    Osun State claimed that the alleged brazen decision of the AGF necessitated its decision to approach the Supreme Court to determine the propriety or otherwise of the federal government’s alleged plan to pay the statutory allocation of the Local Government Councils in the state to officials of the APC.

    It further claimed that the said APC officials have been removed from office by a subsisting judgement of a High Court, which was affirmed by the Court of Appeal.

    Lawyer to the AGF, Akin Olujimi (SAN), who disputed Adetunbi’s claim that all the documents filed by the plaintiff have been served on his client, said he was yet to be served with the motion on notice for the discontinuance of the plaintiff’s case against the AGF.

    Read Also: Ozekhome slams FG for withholding Osun LG funds

    Olujimi added that even if the notice of discontinuance was served on his client, the court’s scheduled business of the day should be allowed to go on, except that the court decides otherwise.

    Lawyer to the Central Bank of Nigeria (CBN), Muritala Abdulrasheed (SAN) told the court that it was the AGF who wrote to the Chief Judge to request that the case be heard expeditiously by a vacation judge.

    Andulrasheed said his client, listed as the first defendant, filed seven sets of documents, some of which challenge the plaintiff’s motion for stay of proceedings and its motion challenging the administrative power of the court’s Chief Judge to transfer the case to Abuja.

    Lawyer to the Accountant General of the Federation (AG-F), Tajudeen Oladoja (SAN), listed as the second defendant, noted that should the court fail to hear the case during its ongoing vacation, it would become an academic exercise.

    Oladoja prayed that the court hear at once all the pending documents (processes) filed by all the parties in the case.

    The Osun government, by the suit, is seeking to, among others, restrain the CBN from opening accounts for the Chairman elected on the platform of the APC in 2022, whom the plaintiff claimed has been sacked by a judgment of the Federal High Court.