IBADAN, Nigeria — A High Court in Oyo State has ordered the United Bank for Africa (UBA) to freeze controversial accounts into which federal allocations for Osun State’s 30 local governments were allegedly paid.
The funds were lodged in newly opened accounts operated by local government chairmen and councillors who had earlier been sacked by the courts.
The order, granted by Justice A.L. Akintola on Friday, September 26, 2025, followed a motion filed by the Osun State government through its Attorney-General.
The state argued that the payments undermined constitutional provisions and risked plunging Osun into political and financial crisis.
“Having carefully considered the motion Ex-parte… this court is satisfied that the claimants/applicants have successfully made out a case for the urgent intervention of this court at this stage as any delay may foist… an irreversible harm, injury or situation of helplessness,” the judge ruled.
The court restrained UBA from releasing any funds from the accounts until a motion for interlocutory injunction is heard.
The matter has been adjourned to Friday, October 3, 2025.
In a covering letter to UBA, Osun’s lead counsel Musibau Adetunbi, SAN, reminded the bank of its “duty to comply” with the interim order.
The Nigeria Union of Local Government Employees (NULGE) condemned the diversion of allocations, warning that grassroots governance could be crippled.
“This is nothing but an attempt to short-change the people at the grassroots. These allocations are meant to improve lives in the local councils, not to fuel political battles,” NULGE president Nathaniel Ogungbangbe said.
But the All Progressives Congress (APC) in Osun dismissed the concerns, accusing NULGE of acting as a mouthpiece for the ruling Peoples Democratic Party (PDP).
The APC insisted the allocations rightly belonged to the councils.
The PDP countered, demanding that the APC disclose full details of the accounts.
“The APC should publish the account numbers if it has nothing to hide. The people of Osun deserve to know where their money is kept. These allocations are not party funds; they are public resources,” the party said.
The controversy has stirred debate over local government autonomy and the use of statutory allocations.
