● Lists About 50B of Illegal Payments Amidst Local Workers’ Suffering and Neglect
● Vows to Recover All Diverted LG Funds
● Restates Assembly’s Oversight and Legislation Powers over LGs
The Osun State House of Assembly has raised alarm over illegal payments and handling of billions of naira from Osun local government fund by court sacked APC chairmen through the alleged machinations of Blue Economy minister, Gboyega Oyetola and the United Bank for Africa (UBA).
The House condemned and decried reports of billions of naira of Local Government funds been paid out under the alleged directive of Mr Gboyega Oyetola such as:
- 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;
- N13B legal fees payment to Layonu and co, lawyers representing the illegal chairmen and councilors as 15% of deposited funds.
Reaffirming the illegality of forceful occupation of council secretariats by tenureless politicians, the Assembly condemned the callousness of the APC cronies and the minister, lamenting that “not one naira has been paid in the last 12 months as salaries of local workers by these illegal APC chairmen: primary school teachers – zero ; nurses and other healthcare workers – zero; local government civil servants – zero; traditional rulers not favored 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 (N50B) of LG funds for political purposes, disguised as project funds, while governance at the grassroots continue to suffer”, the House alerted the public, declaring 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.
Addressing a world press conference at Osogbo on behalf of the Assembly on Sunday, the principal officers led by the House Speaker, Rt. Hon. Adewale Egbedun warned of harsh legal consequences as every illegally handled fund will be recovered and those involved will be brought to book, warning that UBA faces reputational damage and declared that Mr Oyetola breached the law by orchestrating illegal handling of Osun LG Funds.
The House which particularly frowned at illegal meddlesomeness of the blue economy minister strongly asserts that “Mr Oyetola, a nephew to President Tinubu, has no constitutional, statutory, or moral authority to control Local Governments funds, issue instructions on LG funds, influence banks, or direct security agencies in respect of LG administration, adding 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”, clarifying that “politicians elected as, chairmen, councilors, 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 the 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 the funds that UBA has disbursed so far with the alleged illegal instructions of Mr Oyetola is a gift to him and cannot 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, 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, the Assembly posited.
The Assembly which reaffirmed its oversight and legalisation powers based on the constitution affirmed that financial autonomy does not invalidate section 7 of the constitution, declaring that “the assembly 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 House notes with grave concern that individuals whose elections were nullified by courts, and whose self-awarded tenure expired on 22, October 2025, continue to unlawfully occupy Local Government secretariats and interfere with Local Government finances, 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 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 as this is supposed to be a democracy, where nobody is above the law and where Mr Gboyega Oyetola should not be allowed to carry on as if he is above the law in Osun State.
