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Osun Assembly threatens legal action against AGF, CBN over alleged diversion of LG funds

by Present Nigeria
June 20, 2025
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The Osun State House of Assembly, yesterday, threatened litigation against the Accountant-General of the Federation (AGF) and the Central Bank of Nigeria (CBN), if local government allocations are paid into unauthorised accounts.

This came as the lawmaker representing Obokun/Oriade Federal Constituency in Osun State, Mr Wole Oke urged Governor Ademola Adeleke to stop blackmailing President Bola Tinubu over the ongoing local government imbroglio in the state.

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The local government allocation in Osun State has been withheld due to the ongoing imbroglio over control of council areas between the All Progressives Congress (APC), and Peoples Democratic Party (PDP), elected council officials which led to the closure of council secretariats since February 2025.

The House of Assembly, in its resolution, yesterday, tasked the AGF and the Minister of Finance to instruct the CBN to release all outstanding allocations and to authorise accounts, adding that doing otherwise would amount to the diversion of the fund.

Reading out the resolution of the Assembly, the Speaker, Mr Wale Egbedun said: ‘The House affirms that, by law, only duly appointed career officers namely, the Director of Finance and the Director of Administration and General Services are authorised signatories to Local Government accounts, as stipulated in Section 14.0 of the 2025 Guidelines for the Administration of Local Government Areas in Osun State.

‘The Bank Confirmation and Schedule shall only be valid when endorsed by the Head of Local Government Administration and the Chairman, as further required by law.

‘That any attempt to substitute these officers with unauthorised persons is not only unlawful but constitutes an attempt to divert public funds, and this House shall take all lawful measures to resist, report, and reverse such infractions.

‘This House expresses grave concern over the non-release of Local Government statutory allocations in Osun State and calls on the Accountant-General of the Federation and the Honourable Minister of Finance to immediately release all outstanding allocations through the lawful Local Government Accounts.

‘This House strongly condemns any attempt by unauthorised persons to approach the CBN for any transaction relating to Local Government Funds, which constitutes a breach of constitution and statutory financial architecture’.

Meanwhile, a member of the House of Representatives, Mr Wole Oke blamed Governor Ademola Adeleke for his lack of action on the 10 February 2025 Appeal judgement for the current council crisis in the state.

In a statement, the Lawmaker said it is unfortunate that the opportunity to appeal the judgement has lapsed.

Oke said: ‘It is time Mr Governor owned up to his shortcomings. You cannot continue to blackmail President Tinubu, Mr Gboyega Oyetola, and the Attorney-General of the Federation and Central Bank of Nigeria over your lack of action.

‘I spoke to you and advised you on what to do on the Court of Appeal judgement reinstating elected APC Council Chairmen, Vice Chairmen and Councillors but you ignored me. Only an illiterate lawyer will advise you contrary to what the Court of Appeal ruled. What else do you need to hear? The window for you to ask for a stay of execution and appeal at the Supreme Court has unfortunately closed perpetually and the APC will not help you by going to the Supreme Court on the APP’s case’.

‘What is left for you to do now is to direct the local government civil servants, NULGE, to go back to work, embrace the APC-elected officials, work together until their tenure ends. OSIEC should issue a notice of a fresh election so that in the next 180 days we shall have another election to elect new Local Government officials and that is if APC elected officials are not asking for completion of their three-year Mandate. In the alternative, they can be paid their emoluments for the three years.

‘Mr Governor, please bear in mind that APC and PDP members are all citizens of Osun State and you owe us a duty of care.

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