Osun Assembly Raises Alarm Over Alleged Diversion of Local Government Funds by UBA, Oyetola & APC Cronies

Osun Assembly Raises Alarm Over Alleged Diversion of Local Government Funds by UBA, Oyetola & APC CroniesThe Osun State House of Assembly has issued a stern warning to the United Bank for Africa (UBA), former Governor Gboyega Oyetola, and alleged APC cronies over the purported illegal handling and diversion of Local Government (LG) funds across the state. In a press briefing held on Sunday, the principal officers of the House, led by Speaker Rt. Hon. Adewale Egbedun, outlined the gravity of the situation and vowed to recover every naira misappropriated while reinforcing the Assembly’s constitutional oversight powers over LG administration.

Billions Allegedly Diverted Amid Workers’ Suffering

The Assembly detailed a series of payments allegedly made under the instructions of Oyetola, describing them as unlawful and politically motivated. According to the statement, the alleged diversions include:

• N25 million to each of 30 purported APC chairmen
• N12 million to each of 30 APC vice chairmen
• N10 million to each of 332 APC councillors
• N130 million each to selected traditional rulers
• N13 billion in legal fees paid to lawyers representing the allegedly illegal chairmen and councillors

The House strongly condemned what it described as the “callous disregard for local governance and public welfare,” highlighting that for over a year, local workers, including primary school teachers, nurses, healthcare staff, civil servants, and retirees, have gone without salaries while funds were allegedly redirected for political patronage.

“Even more disturbing,” the Assembly warned, “are reports of plans to disburse another N50 billion of LG funds for political purposes disguised as project funding, while governance and essential services at the grassroots continue to suffer.”

Constitutional Mandate and Oversight Powers

The Osun Assembly reaffirmed its constitutional authority under Section 7 of the 1999 Constitution of the Federal Republic of Nigeria, insisting that legislative powers include regulating Local Government administration, financial controls, and accountability. “No individual, regardless of political connections, is above the law. The law is the law,” the House stated, stressing that financial autonomy granted to LGs does not nullify the Assembly’s oversight powers.

The statement also made it clear that only career officers appointed under the Local Government Service Commission, including directors of finance and administration, are lawful signatories to LG accounts. Politicians, whether chairmen, councillors, treasurers, or appointees, are strictly forbidden from handling LG funds.

“Any bank that releases LG funds on instructions from unauthorized persons acts unlawfully and exposes itself to criminal liability,” the Assembly declared. It specifically warned UBA that any continued compliance with alleged illegal directives would constitute complicity in financial crimes, attracting both legal and reputational consequences.

UBA and International Oversight

The Assembly’s warning extended beyond national borders, urging the international community, financial regulators, and institutional partners to take note of UBA’s alleged actions. The House emphasised that global financial institutions should not be associated with the unlawful handling of public funds or the undermining of democratic institutions.

“The international community must be aware that the misappropriation of Osun LG funds is not just a state-level issue but a matter of integrity in global banking standards,” the House stressed.

Support for Responsible Governance

While condemning alleged illegalities, the Assembly commended the Governor of Osun State for personally ensuring that workers continued to receive their salaries despite the withholding of LG allocations. “This extraordinary sacrifice demonstrates responsible leadership,” the House noted, “but it must not become an excuse for political diversion of public funds.”

The Assembly reaffirmed that those whose tenure was nullified by the courts, or whose terms expired in October 2025, have no legal mandate to occupy council secretariats or interfere in LG finances. “Being related to the President confers no legal power to override the Constitution or the law,” the statement stressed, referring to Gboyega Oyetola’s familial ties to President Tinubu.

Public Reaction and Online Discourse

The issue has sparked heated debate on platforms like Nairaland, where users expressed a range of opinions—from condemnation of the alleged misappropriation to skepticism about the evidence presented. Some forum members accused UBA and other financial institutions of colluding with political elites to misappropriate public funds, while others questioned the validity of the Assembly’s claims.

Contributors such as Freshandfitpod argued that UBA’s alleged involvement reflects a broader pattern of corporate complicity in political manoeuvres, while others like press9jatv called for documented evidence before drawing conclusions. Many participants, however, highlighted the wider implications of such diversions for grassroots development, education, and healthcare services in Osun State.

The Assembly’s Next Steps

In conclusion, the Osun State House of Assembly made it clear that it will take decisive legal action to recover any misappropriated LG funds. The House has instructed relevant committees to investigate every alleged payment, and warned that individuals and institutions found complicit in the diversion of public money will face the full force of the law.

“Osun State is not a playground for political cronies. We stand resolutely for the welfare of our people, the integrity of our Local Governments, and the principles of the Constitution,” the statement concluded.

For continuous updates and detailed coverage of this unfolding political and financial controversy in Osun State, visit Akahi News, where expert analysis and verified reports are regularly provided.

Akahi News www.akahinews.org

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