Osun Accuses AGF, CBN Of Plotting To Divert LG Funds
Osun State Government has alleged plans by the offices of the Governor of the Central Bank of Nigeria and that of the Accountant General of the Federation, to pay statutory funds due to local government areas in the state into private accounts of some individuals.
In a statement signed by the State Commissioner for Local Government and Chieftaincy Affairs, Dosu Babatunde, and obtained on Wednesday, the government said the rush to pay the money was a deliberate plan aimed at thwarting the cases already filed at the Supreme Court of Nigeria.
“As a government, we are of the strong contention that this is quite sad, unfortunate, and unconstitutional for these two Federal Government Agencies to conclude plans to pay Government money into private accounts. This will amount to an open violation of public finance regulations.
“When Osun State Government first heard about this plan, it quickly took a step through the office of the Auditor General for Local Governments in the state by sending a letter to the CBN, introducing the accounting officers of each of the 30 local governments to them such as the Heads of Local Government Administrations(H.L.A) and Director of Finance.
“However, to our great consternation and dismay, the CBN Osogbo office rejected the list with strong suspicion that it planned to pay the allocation of Osun Local Governments to private accounts of former Governor Gboyega Oyetola’s men who submitted their names without the input of the accounting officers of all the LGs in Osun State,” the statement read in parts.
But when contacted for reaction, the chairman of the LG chairmen elected on the platform of the All Progressives Congress in the state, Mr. Abiodun Idowu, dismissed the allegations.
Idowu said, “We know the implications of public money going into private accounts.
“Any money that would be paid would go to the appropriate account.
“Maybe those who raised the allegation were not referring to us.
“Tell them to look somewhere else.”
But the state government while drawing the attention of President Bola Tinubu to the matter, insisted that the move was unlawful, noting that it was being done without the consent and knowledge of the President, as well as that of the Minister of Finance.
It warned that “Any money paid into the private account of any individual is not and will never be Osun State Local Government money, and the consequence for this will be very severe as Osun State Government will not spare any action in line with the dictates of the law in order to redress such anomaly.”
In a related development, the leadership of the Nigerian Union of Local Government Employees, Osun State chapter, said the CBN through a letter had directed authorised persons to open an account with the Osogbo Branch of the bank on behalf of local government areas in the state.
Addressing journalists in Osogbo on Wednesday, the State President of the Union, Dr. Nathaniel Ogungbangbe, who called on stakeholders to meet and amicably resolve issues causing disagreement regarding the management of local government areas in the state, said the authorised signatories to LGs accounts in the state remain, the Director of Finance and Supplies and the Director of Administration and General Services, with the Head of Local Government Administration and Council Chairmen confirming the schedules.
“Osun NULGE have in our possession a letter dated 10th June 2025 that emanated from the Office of the Accountant-General of the Federation, titled: ‘RE PAYMENT OF STATUTORY ALLOCATION TO OSUN STATE LOCAL GOVERNMENT AND OPENING OF ACCOUNT’, and signed by one Okolie Rita O. (Director Federation Account Department) Office of the Accountant-General of the Federation.
“In the letter, the Office of the Account-General of the Federation requested for the opening of the Account for the Thirty (30) Local Governments in Osun State, with the following conditions:
“This is to inform you that CBN has requested that the Local Governments should apply for opening and maintenance of the Account as the CBN Osogbo Branch, through any two persons out of the following Officers: Chairman, Treasurer or Director, Finance and Administration or Director of Personnel Management.
“NULGE had informed the Honourable Minister of Finance, the Accountant-General of the Federation as well as the CBN Governor that the authorised signatories to Local Government Accounts in the Osun State are the Director of Finance and Supplies and the Director of Administration and General Services with the Head of Local Government Administration and Council Chairmen confirming the Schedules,” Ogungbangbe said.
He urged the CBN to adhere to the law to prevent further complications and avoid financial malpractice, saying “There is a grand plan by the Central Bank of Nigeria (CBN) to pay Osun State Local Government Allocation into personal accounts of some impostors who are not Local Government Staff.”
Also, the chairman, Osun State Independent Electoral Commission, Hasim Abioye, while speaking at a press conference held in Osogbo on Wednesday, said the only legitimate political authority over the local council in the state is the products of the February 2025 local government election conducted by the commission.
Abioye also said that the election has never suffered any legal defect or judicial nullification, and explained that the commission has notified the appropriate authorities, including the State Ministry of Local Government, the State Local Government Service Commission, the Central Bank of Nigeria, amongst others for them to be properly guided.
He challenged stakeholders in the state to rise to the occasion and condemn the alleged, “Partisan and biased stance of the Attorney General of the Federation and the Inspector-General of Police who have lent their powers and authority to back the illegal act of the hijackers without any justification.
“These sacked officials have summoned the shameless boldness, even after losing gallantly in court on 13th June 2025, to still go back to the local council offices forcefully, posing open threat and menace to the public, sharing bottles of alcoholic drinks in such a rude and crude manner, grandstanding in public properties. What for!
“Against this background, I want to assure the public that the confidence reposed in us by them, we shall not betray and as a constitutional body, we owe the public a duty of truthfulness, honesty, transparency, and accountability,” Abioye said.