By Ayodele Oni
Assembly cites Constitution, vows to recover all illegally disbursed funds
The Osun State House of Assembly has raised the alarm over alleged continued tampering with local governments’ funds by the immediate past Governor of the state, Gboyega Oyetola.
The assembly also fumed over continued stay in office by chairmen and councilors, whose tenure expired since October, last year.
Addressing a press conference in Osogbo, the assembly maintained that
“The House can not watch, while actions that undermine the rule of law, democratic governance, and the welfare of the people at the grassroots continue unabated.
“The legislative authority, or the power of the State House of Assemblies to make laws regulating Local Government administration, financial controls, and accountability, are expressly recognised under Section 7 of the Constitution of the Federal Republic of Nigeria.
“The Financial Autonomy granted the local governments by the Supreme Court does not negate section 7 of the constitution.
“The House notes with grave concern that individuals whose elections were nullified by courts of competent jurisdiction, and whose self-awarded tenure has since expired by effluxion of time on 22, October 2025, continue to unlawfully occupy Local Government Secretariat and interfere with Local Government finances.
“These individuals have no legal mandate. They are not recognised by law, by the courts, or by the Constitution. Their continued presence in Local Government councils is illegal and must not go on unchecked.”
On disbursement of councils’ fund, the assembly alleged that “Mr Gboyega Oyetola, a nephew to President Tinubu, has no constitutional, statutory, or moral authority to control Local Governments funds, issue instructions on Local Government funds, influence banks, or direct security agencies in respect of Local Government administration.
“Being related to the President of the Federal Republic of Nigeria confers no legal power to interfere in the affairs of Osun State Local Governments. Nigeria is governed by laws, not family ties.
“The House is particularly alarmed by credible information that huge sums of Local Government funds have been paid under the directive of Mr Gboyega Oyetola.”
These include “N25m payment to each of the 30 illegal APC chairmen; N12m payment to each of the 30 illegal APC Vice Chairmen; N10m payment to each of the 332 APC Councilors; N130m each, to selected traditional rulers in Osun State and N13B legal fees payment to Layonu and co, lawyers representing the illegal chairmen and councilors. 15% of deposited funds is N13B.
“Please note that local governments funds are being used illegally to pay lawyers who represented the APC chairmen and Councilors in their private capacities. The lawyers were not engaged by the local governments.
“Please ask Mr Gboyega Oyetola why he authorised the sum of N13B to be paid to Layonu and co (private lawyers) from local governments funds. This is criminal and this House will demand the refund of every kobo from UBA
“Meanwhile, NOT one naira has been paid in the last 12 months as salaries of local workers by these illegal APC chairmen.”
These include Primary School Teachers,
Nurses and other Healthcare Workers, Local Government Civil Servants, Traditional Rulers Not favored by Gboyega Oyetola and Retirees.
“Even more disturbing are reports before this House that plans are allegedly underway to disburse another N50B
(Fifty Billion Naira) of Local Government funds for political purposes, disguised as project funds, while governance at the grassroots continue to suffer.
“This House 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 assembly accused the United Bank of Africa, (UBA) of complicity in the illegal disbursement of local government fund in the state.
“The Osun State House of Assembly formally places on record that it has written repeatedly to banks, including the United Bank for Africa Plc (UBA), clearly educating them on the law.
“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 Local Government accounts.
“Politicians elected as, Chairmen, Councilors, treasurers, or political appointees are forbidden from being signatories to Local Government 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 the United Bank for Africa Plc (UBA) in very clear terms that all illegal disbursements of Osun State Local Government 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 the funds that UBA has disbursed so far with the alleged illegal instructions of Mr Gboyega Oyetola is a GIFT to Mr Oyetola and cannot be deducted from Osun State Local Government 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 lauded Governor Ademola Adeleke “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, continue 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 criminal diversion of funds meant for salaries of Osun State Local Governments.
“Osun State belongs to its people. The welfare of nurses, teachers, health workers, local government Civil Servants, traditional institutions, and ordinary citizens must never be sacrificed on the altar of politics.
“The law is the law. No individual is above it. No bank is immune from it. No political interest can override it. This is supposed to be a Democracy, where nobody is above the law. Mr Gboyega Oyetola should not be allowed to carry on as if he is above the law in Osun State.
“This House stands firmly with the people of Osun State. We will defend democracy. We will defend the rule of law. We will defend the sanctity of public funds. And we will not retreat until this illegality ends and justice prevails.”
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