LG Funds: Osun Assembly accuses Minister of illegality, warns UBA Plc of complicity in financial crime

*The Osun State House of Assembly warns the United Bank for Africa (UBA) Plc that all illegal disbursements of Osun State Local Government funds, whether purportedly authorised by Minister Gboyega Oyetola or any other individual, will be fully recovered and treated as deliberate complicity in a financial crime

Isola Moses | ConsumerConnect

Amid the crisis rocking the South-West state, in Nigeria, over the disbursements of the Local Government Council funds, the Osun State House of Assembly has accused former Governor and current Minister for Marine and Blue Economy, Gboyega Oyetola, of unlawfully directing the disbursement of the funds, and interfering witg council administration.

The House described Oyetola’s alleged actions as a threat to democracy, the rule of law and grassroots governance.

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ConsumerConnect reports the Osun State House of Assembly levelled the allegation during a press conference addressed by the Speaker, Adewale Egbedun, and shared on his official Facebook page Sunday, February 1, 2026.

Egbedun said the House was alarmed that individuals whose elections as local government officials were nullified by courts, and whose tenure expired on 22 October, 2025, were still occupying council secretariats and handling public funds.

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He considered the continued presence of the officials, all affiliated with the All Progressives Congress (APC) as illegal, and had no backing under the Constitution or existing court judgments.

The Speaker He also said: “These individuals have no legal mandate. They are not recognised by law, by the courts, or by the Constitution.

“Their continued presence in Local Government Secretariats is illegal and must not go on unchecked.”

He further noted the House alleged that Oyetola, a Federal cabinet member and nephew of President Bola Ahmed Tinubu, had been issuing directives on the disbursement of local government allocations despite having no constitutional or statutory authority to do so.

The Speaker explained: “Being related to the President of the Federal Republic of Nigeria confers no power to interfere with the affairs of Osun State Local Governments.”

Nigeria is governed by law and not by personal relationships, he declared.

On allegations of illegal disbursement of funds from UBA Plc

The House claimed it had credible information that large sums of council funds were released under Oyetola’s directives, including N25 million paid to each of the 30 APC local government chairmen, N12 million to each Vice-Chairman, and N10 million to each of the 332 Councillors.

It also alleged that N130 million was paid to selected traditional rulers in the state, while N13 billion was paid as legal fees to a private law firm representing the APC chairmen and Councillors.

The Speaker said the lawyers were not engaged by the local governments and that the payment of their fees from council funds amounted to a criminal diversion of public resources.

Egbedun stated: “Please, note that local governments funds are being used illegally to pay lawyers who represented the APC chairmen and councilors in their private capacities.

“The lawyers were not engaged by the local governments.”

He averred: “Please ask Mr Gboyega Oyetola why he authorised the sum of N13 billion to be paid to Layonu and co (private lawyers) from local governments funds.

“This is criminal and this House will demand the refund of every Kobo from UBA PLC.”

Osun Assembly accuses UBA Plc of complicity

Egbedun insisted that the State Assembly would demand a full refund of the funds and specifically questioned the role of United Bank for Africa (UBA) Plc in releasing the money illegally.

While accusing the commercial bank of complicity, the Assembly warned that any financial institution that disburses local government funds on the instructions of unauthorised persons would be liable to criminal prosecution.

“The House, therefore, warns the United Bank for Africa Plc (UBA) in very clear terms that all illegal disbursements of Osun State local government funds, whether purportedly authorised by Mr. Gboyega Oyetola or any other individual, will be fully recovered and treated as deliberate complicity in a financial crime.

“All the funds that UBA has disbursed so far with the alleged illegal instructions of Mr. Gboyega Oyetola is a GIFT to Mr Oyetola, and cannot be deducted from Osun State Local Government Accounts.”

The Assembly also claimed that despite the alleged payments, local government workers had not been paid salaries for the past 12 months.

Those affected, according to the House, include primary school teachers, nurses, health workers, council civil servants, retirees and traditional rulers not favoured by the APC officials.

Even more troubling, the speaker said, were reports that another N50 billion of council funds was being planned for disbursement under the guise of project execution for political purposes.

The Osun State House of Assembly restated that it had repeatedly written to UBA and other banks, reminding the bank that under Osun State laws, only career officers appointed by the Local Government Service Commission are authorised signatories to council accounts.

The Assembly that all funds already released under what it described as illegal instructions would be treated as losses borne by the bank and would not be deducted from local government accounts.

It, therefore, put international partners and financial regulators on notice, warning that continued involvement in the alleged actions could expose the bank to reputational and legal consequences.

Egbedun also commended Governor Ademola Adeleke of Osun State for ensuring the payment of salaries to local government workers over the past year despite the alleged withholding of council allocations.

He said while the governor’s intervention showed responsible leadership, it should not excuse the diversion of funds meant for grassroots development.

“Osun State belongs to its people. The welfare of nurses, teachers, health workers, local government Civil Servants, traditional institutions, and ordinary citizens must never be sacrificed on the altar of politics.

“The law is the law. No individual is above it. No bank is immune from it. No political interest can override it.

“This is supposed to be a Democracy, where nobody is above the law. Mr Gboyega Oyetola should not be allowed to carry on as if he is above the law in Osun State,” the Speaker said.

Meanwhile, report has indicated that Oyetola denied the allegation preferred against him.

Bolaji Akinola, Special Adviser on Media to Oyetola, reacted to the Osun Assembly’s claim on behalf of the Minister.

Akinola said: “The attempt to link Dr. Oyetola to local government finances is reckless propaganda, and a deliberate falsehood.

The media aide asserted: “The Minister has no authority over councils, has issued no directives to banks, and has not interfered with local government administration.”

He further argued: “Local Governments enjoy full financial autonomy guaranteed by the Constitution and affirmed by the Supreme Court.’’

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