OSOGBO, Nigeria—Residents and traders in Osun State on Monday besieged branches of United Bank for Africa in Osogbo, demanding the closure of their accounts in protest over the bank’s alleged refusal to release ₦230 billion in local government funds to what they described as lawful executives on Monday. The action disrupted banking activities at branches in the Olohunkoro area as customers submitted account closure letters.

The protesters alleged that the bank’s handling of the disputed council funds had negatively affected economic activities across the state. In their letters, customers claimed the bank was “at the center of Osun LGA imbroglio” and accused it of failing to make available about ₦230 billion belonging to Osun local governments to “lawfully elected local government management.”

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The letters further alleged that a court had issued arrest warrants for four top bank officials and accused the institution of opening local government accounts without following due process. “Retirees in Osun State are not being paid as a result of your action or inaction in disbursement of Local Government Monies to Lawful LGA Management,” one letter read. “With all these above reasons, we have lost confidence in your bank to keep our monies safe. Please close the account immediately without delay.”

Mrs. Morenike Abejide, who identified herself as leader of the traders, said the protest was driven by frustration over the local government impasse. “We are hungry because UBA is involved in the withholding of local government funds which belongs to us dwellers at the grassroots,” she said, appealing to President Bola Ahmed Tinubu to intervene. Another customer, Ajani Jimoh, said safety was paramount in banking decisions, adding that if confidence in financial practices was eroded, customers had no choice but to withdraw their funds. UBA had not publicly responded to the allegations as of press time.