Osun Assembly warns banks not to honor unauthorized financial instructions on LG accounts 

Osun State House of Assembly has warned commercial banks in the state, Osogbo branch, not to honour unauthorised financial instructions on local government accounts.

Speaker of the House, Honourable Adewale Egbedun, who dropped the warning via a letter, drew attention to unlawful financial directives allegedly issued in some local governments, including Boluwaduro Local Government, authorising deductions of up to 15 percent of September 2025 allocations in favour of private individuals.

He described such actions as illegal, unconstitutional and without any budgetary approval, stressing that treasurers are not legally recognised signatories to local government accounts under extant laws.

The House reaffirmed that only the local government chairman and the Director of Administration and General Services, both officers of the Local Government Service Commission are  empowered to operate such accounts in line with the Osun State Guidelines on Local Government Administration and the Public Financial Management Law, 2020.

Citing its resolution of  September 29, 2025, the assembly reiterated that no withdrawals or deductions may be made from local government accounts without strict compliance with the constitution, internal regulations and approved budgets. It further warned that any financial institution processing unauthorised instructions would be deemed complicit in financial misconduct in violation of multiple national anti-corruption laws, including the Money Laundering (Prevention and Prohibition) Act, 2022, and would face the  weight of the law.

The speaker cautioned that erring banks risk severe consequences, including summons before the House, arrest warrants and referrals to anti-corruption agencies for investigation and prosecution.

The letter reads:” I write with reference to our earlier letter dated  September 29, 2025, by which the  assembly, pursuant to its oversight powers under Sections 128 and 129 of the  1999 Constitution  (as amended), demanded  disclosure of all local government accounts domiciled with your bank.”

“This  House has been made aware that certain local government areas in  the  state, including but not limited to Boluwaduro Local Government, have issued financial instructions authorising deductions from their accounts in favour of private parties. One such instance is the instruction to deduct 15 percent of funds received in September 2025, allegedly authorised by the local government’s treasurer and chairman.”

“ Apart from the fact that such an expenditure is illegal and does not conform with the provisions of internal regulations, it is equally not provided for in the  2025 approved budget of the local governments.”

“ Let it be  stated for record purposes that the treasurer is not a legally recognised signatory under the extant Osun State laws governing the operation of local government accounts. Specifically, Section 14 of the Guidelines for the Administration of Local Government stipulates that only persons listed by the  assembly resolution, which stipulates that only the local government chairman, Director of Administration and General Services, as officers under the employment of the Local Government Service Commission, are authorised to operate such accounts.

“These provisions are further supported by the Osun State Public Financial Management Law, 2020.

“Furthermore, the resolution of this House passed on Monday, September 29, 2025, affirms that no withdrawals or deductions may be made from local government accounts without compliance with the Constitution, the Guidelines and the Financial Management Law.

“The said resolution also declared that any bank which processes instructions issued by unauthorised persons shall be deemed to have aided and abetted financial misconduct in violation of the Constitution, the Criminal Code Act, the Money Laundering (Prevention and Prohibition) Act, 2022, the Economic and Financial Crimes Commission Act, and the Independent Corrupt Practices and Other Related Offences Commission Act.

“Accordingly, you are hereby formally warned not to honour any instruction, verbal, written or electronic  authorising disbursement, deduction or diversion of public funds from any local government account domiciled in your bank unless such instruction originates from the legally authorised signatories and is supported by express budgetary provision approved by the House.

“Any transaction in breach of this position shall attract the  constitutional and legal consequences, including summons before the House, the issuance of warrants of arrest and referrals to anti-corruption agencies for investigation and prosecution. Your institution will also stand the risk of blacklisting and recommendation for withdrawal of the privilege to operate government accounts.

“You are reminded that your response to our initial request remains due within the 24-hour timeframe already communicated.

“This matter  is of  public interest and must be treated with the utmost urgency and seriousness it deserves”, it  said.

Meanwhile, the  Nigeria Union of Local Government Employees (NULGE) in the  state, on Thursday, told members of the union to disregard the sponsored story of a particular political party that said leadership of the union has directed its workers to resume work.

The union’s chairman, Dr Nathaniel Kehinde Ogungbangbe, in a statement made available by  Mr  David Olalekan Owoeye, the state publicity secretary in Osogbo, said the claim was to cause commotion and disorganise the well – informed NULGE members in the state.

“The union is using this medium to inform our well-respected members to know that such information did not emanate from the elected  NULGE executives under the leadership of Dr  Ogungbangbe and there is no directive of such from the national body of our union under the leadership of  Haruna Aliyu Kankara.

“It was authored to destabilise the peace of the state through which our members could be massacred and reduce our membership strength.”

Therefore, the union is  urging all  members to see the write-up as the handiwork of the killers of destiny which needed to be  jettisoned and  stay away  from office until further directive from the  real elected   state   NULGE executives  in the state.

“It is equally pertinent to note that  NULGE has not directed our members to resume work.

“The union executives will continue to defend the interest of our members,’’ he said.