The Osun State House of Assembly has issued a stern warning to commercial banks in the State, particularly the United Bank for Africa (UBA) Plc, Osogbo Branch, against honouring unauthorised financial instructions on Local Government accounts.
In a letter personally signed by the Speaker, Rt. Hon. Adewale Egbedun, the House drew attention to unlawful financial directives allegedly issued in some Local Governments, including Boluwaduro Local Government, authorising deductions of up to 15 percent of September 2025 allocations in favour of private individuals.
The Speaker described such actions as illegal, unconstitutional, and without any budgetary approval, stressing that Treasurers are not legally recognised signatories to Local Government accounts under extant laws. The House reaffirmed that only the Local Government Chairman and the Director of Administration and General Services, both officers of the Local Government Service Commission, are duly empowered to operate such accounts in line with the Osun State Guidelines on Local Government Administration and the Public Financial Management Law, 2020.
Citing its Resolution of 29th September, 2025, the Assembly reiterated that no withdrawals or deductions may be made from Local Government accounts without strict compliance with the Constitution, internal regulations, and approved budgets. It further warned that any financial institution processing unauthorised instructions would be deemed complicit in financial misconduct, in violation of multiple national anti-corruption laws, including the Money Laundering (Prevention and Prohibition) Act, 2022, and would face the full weight of the law.
The Speaker cautioned that erring banks risk severe consequences, including summons before the House, arrest warrants, blacklisting, and referrals to anti-corruption agencies for investigation and prosecution.
The letter reads:
“I write with reference to our earlier letter dated 29th September 2025, by which the Osun State House of Assembly, pursuant to its oversight powers under Sections 128 and 129 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended), demanded full disclosure of all Local Government accounts domiciled with your bank.
“This Honourable House has been made aware that certain Local Government Areas in Osun State including but not limited to Boluwaduro Local Government have issued financial instructions authorising deductions from their accounts in favour of private parties. One such instance is the instruction to deduct 15 percent of funds received in September 2025, allegedly authorised by the Local Government Treasurer and Chairman.
“Apart from the fact that such an expenditure is illegal and does not conform with the provisions of internal regulations, it is equally not provided for in the Year 2025 approved Budget of the Local Governments.
“Let it be clearly stated for record purposes that the Treasurer is not a legally recognised signatory under the extant Osun State laws governing the operation of Local Government accounts. Specifically, Section 14 of the Guidelines for the Administration of Local Government stipulates that only persons listed by the House of Assembly resolution, which stipulates that only the Local Government Chairman, Director of Administration and General Services, as officers under the employment of the Local Government Service Commission, are authorised to operate such accounts.
These provisions are further supported by the Osun State Public Financial Management Law, 2020.
“Furthermore, the Resolution of this Honourable House passed on Monday, 29th September, 2025 affirms that no withdrawals or deductions may be made from Local Government accounts without compliance with the Constitution, the Guidelines, and the Financial Management Law. The said resolution also declared that any bank which processes instructions issued by unauthorised persons shall be deemed to have aided and abetted financial misconduct in violation of the Constitution, the Criminal Code Act, the Money Laundering (Prevention and Prohibition) Act, 2022, the Economic and Financial Crimes Commission Act, and the Independent Corrupt Practices and Other Related Offences Commission Act.
“Accordingly, you are hereby formally warned not to honour any instruction — verbal, written, or electronic — authorising disbursement, deduction, or diversion of public funds from any Local Government account domiciled in your bank unless such instruction originates from the legally authorised signatories and is supported by express budgetary provision approved by the House.
“Any transaction in breach of this position shall attract the full constitutional and legal consequences including summons before the House, the issuance of warrants of arrest, and referrals to anti-corruption agencies for investigation and prosecution. Your institution will also stand the risk of blacklisting and recommendation for withdrawal of the privilege to operate government accounts.
“You are reminded that your response to our initial request remains due within the 24-hour timeframe already communicated.
“This matter is of grave public interest and must be treated with the utmost urgency and seriousness it deserves”.
