Osun LG Funds: Court Extends Account Freezing Order Till Oct 9
An Oyo State High Court, sitting in Ibadan, on Friday, extended its interim injunction restraining the United Bank for Africa (UBA) from allowing withdrawals from 30 bank accounts into which withheld allocations for Osun State local governments were lodged by the Central Bank of Nigeria (CBN).
Justice Ladiran Akintola renewed the order to ensure that all parties in the case, Suit No. 1/1149/2025 between the Attorney-General of Osun State, the Osun State Local Government Service Commission, and United Bank for Africa Plc, spokepersoned a fair hearing.
According to a statement by the spokesperon to the Osun State Governor, Ademola Adeleke, the counsel to UBA counsel was not in court during today’s proceedings.
However, Kazeem Gbadamosi (SAN), appearing for the APC council chairmen, was present after filing an application for joinder.
Counsel to the plaintiffs, Musibau Adetunmbi (SAN), opposed the move, noting that he had only just received two fresh applications from the ex-chairmen’s legal team, one seeking joinder and another challenging the court’s territorial jurisdiction, filed on Thursday and Friday.
He stressed that he needed time to examine the documents and argued that the former APC chairmen lacked locus standi until their joinder was formally granted.
“Their application has not been decided upon; they remain outsiders to this case,” he maintained.
Adetunmbi also pressed the need to extend the interim order, stating, “I received the two applications yesterday and today. I must be given time to study them and file my responses in law.”
However, counsel to the APC chairmen and councillors rejected the suggestion that his clients were “strangers”, contending that they were directly affected by the Interim Injunction of 26 September 2025 and had a right to be heard.
In an application dated 2 October, 2025, Gbadamosi not only sought to join the suit but also challenged the jurisdiction of the Oyo State High Court, citing case law to argue that a court cannot extend the life of an order once its jurisdiction is in dispute.
Further evidence was provided to the court through a supplementary affidavit sworn by Mrs Rachael Abidemi Aluko, Head of Local Government Administration in Boluwaduro Local Government.
She alleged that some individuals were attempting to misappropriate local government funds despite the court’s subsisting order.
She referred to a letter, undated, sent to UBA by Mr Adebayo Oyekanmi and Mr Lasisi Gbadebo Oyebode, who styled themselves as Chairman and Treasurer of Boluwaduro Local Government.
In the letter, they instructed the bank to deduct 15 per cent of statutory allocations and remit the sum into the account of a private law firm.
Mrs Aluko dismissed the letter as illegitimate, pointing out that neither individual was entitled to issue such directives.
She clarified that Mr Oyebode was not an employee of Boluwaduro Local Government and that the role of Treasurer does not exist in Osun’s local government framework.
She added that under the 2025 Guidelines for Local Government Administration in Osun State, only the Director of Finance and the Director of Administration & General Services are recognised as authorised signatories to local government accounts.
Aluko identified the current officers holding those positions and submitted exhibits confirming their legitimacy.
The plaintiffs reiterated that the substantive question of who the authentic local government chairmen are is already before the Supreme Court in Suit No. SC/CV/773/2025.
They cautioned that any premature disbursement of the funds would frustrate the course of justice.
Olamilekan Adigun is a graduate of Mass Communication with years of experience in journalism embedded in uncovering human interest stories. He also prioritises accuracy and factual reportage of issues.
