Osun LG funds: Court extends account freezing order till October 9

The ongoing legal tussle over withheld local government allocations in Osun State has taken another turn as the Oyo State High Court sitting in Ibadan extended its Interim Order restraining the United Bank for Africa (UBA) from allowing transactions on 30 bank accounts tied to the funds. The decision, handed down by Justice Ladiran Akintola on Friday, prolongs the no-debit restriction earlier imposed and underscores the sensitive nature of the dispute. The case, registered as Suit No. 1/1149/2025 between the Attorney-General of Osun State, the Osun State Local Government Service Commission, and UBA Plc, has become a focal point of legal and political contention.

Justice Akintola explained that the extension was necessary to guarantee fair hearing for all parties, especially given the flurry of applications recently filed in connection with the matter. While UBA’s legal representatives were absent during Friday’s proceedings, counsel for the court-sacked APC local government chairmen, led by Kazeem Gbadamosi, SAN, appeared in court. He was holding the brief of Kunle Adegoke, SAN, who had just submitted an application for joinder.

Boko Haram, Banditry, Kidnapping Now Mixed Together In Nigeria — Obasanjo

On the other side, Musibau Adetunmbi, SAN, representing the plaintiffs, sought additional time to review and respond to the applications filed by the former APC council chairmen. The applications, he noted, were served on him only on Thursday and Friday, leaving insufficient time to prepare a response. He insisted that the ex-chairmen, having been removed from office and not yet joined to the case, lacked the legal standing to interfere in the proceedings. According to him, they remained “strangers” to the case until the court rules on their joinder request.

Adetunmbi further argued that the extension of the interim order was essential, as attempts were already being made to illegally divert council funds despite the subsisting court order. In support of this claim, a further affidavit was presented by Mrs. Aluko Rachael Abidemi, Head of Local Government Administration in Boluwaduro Local Government. In her deposition, she revealed that two individuals, Mr. Adebayo Oyekanmi and Mr. Lasisi Gbadebo Oyebode, had written to UBA directing the deduction of 15% of statutory allocations for payment into the account of a private law firm.

Mrs. Abidemi stressed that the individuals had no legal authority to issue such instructions. She explained that Mr. Oyebode was neither a staff member nor a treasurer of the council, pointing out that the position of “Treasurer” does not exist in Osun’s local government structure. Instead, she clarified, under the 2025 Guidelines for Local Government Administration in Osun State, only the Director of Finance and the Director of Administration & General Services are recognized as account signatories. She also presented documentary evidence confirming the current officeholders.

On their part, counsel for the sacked APC chairmen argued that their clients were directly affected by the interim injunction of September 26, 2025, and thus could not be dismissed as outsiders. They submitted that, by law, the ex-chairmen had the right to be joined to the suit and that the court lacked the jurisdiction to extend the lifespan of an order while its own jurisdiction was under challenge.

In response, Adetunmbi emphasized that the heart of the dispute remained sub judice before the Supreme Court in Suit No. SC/CV/773/2025, which is scheduled for hearing on Tuesday, October 7, 2025. He maintained that any disbursement of the funds before the Supreme Court’s decision would amount to undermining the judicial process.

Speaking to journalists after the court session, Adetunmbi underscored the urgency of preserving the funds until the Supreme Court rules on the matter. “The crux of the matter is to safeguard the money in issue pending the Supreme Court’s determination on Tuesday, October 7, 2025. Our contention is that even those who paid the money knew the matter was already before the court. They should have respected the Supreme Court by holding on to the money. Let the Supreme Court speak, everybody will be happy, but for you to pay just like that is not acceptable,” he said.

He further alleged that billions of naira were at risk of being diverted under the guise of legal fees. “There is a letter directing that 15% of the withheld funds from March to September — running into billions of naira — should be paid as legal fees to one individual. In what manner? By what procedure? Without this preservation order, the rest of the money would have been gone by now,” he added.

On the applications filed by the ex-chairmen, Adetunmbi clarified that his team had only just received them and would file appropriate responses in due course. He reaffirmed his opposition to their joinder, insisting that they had no legitimate interest in the case. “We are going to oppose the joinder because nothing concerns them with this case,” he stressed.

Justice Akintola’s decision to extend the interim injunction preserves the disputed funds until further arguments are heard and the Supreme Court weighs in on the larger constitutional issues. For now, the accounts remain frozen, pending the determination of both the High Court proceedings in Ibadan and the Supreme Court’s scheduled hearing in Abuja.

The legal battle underscores the tension between political actors, financial institutions, and state authorities over control of local government allocations in Osun State. As the Supreme Court prepares to hear the case on October 7, stakeholders are watching closely, knowing that its judgment could have far-reaching implications not only for Osun but also for the management of local government funds across Nigeria.