Ibadan High Court extends order stopping withdrawals from Osun State local government funds, preserving billions until Supreme Court ruling on allocations dispute.
The controversy surrounding the control of Osun State local government funds has deepened as the Oyo State High Court sitting in Ibadan extended its Interim Injunction against the United Bank for Africa (UBA).
The order restrains the bank from processing debit transactions on thirty accounts containing billions of naira in withheld allocations paid by the Central Bank of Nigeria (CBN) to Osun councils.
Justice Ladiran Akintola, who presided over the matter, ruled that the injunction must remain in place to ensure fairness and to prevent the unlawful disbursement of public funds.
The suit, marked No. 1/1149/2025, involves the Attorney-General of Osun State, the Osun State Local Government Service Commission, and United Bank for Africa Plc.
During Friday’s hearing, the absence of UBA’s counsel was noted. However, lawyers representing the sacked All Progressives Congress (APC) council chairmen appeared in court.
Led by Kazeem Gbadamosi, SAN, they sought to be joined in the case, claiming the injunction directly affected their control over council funds.
Plaintiffs’ counsel, Musibau Adetunmbi, SAN, requested time to study their two fresh applications—one seeking joinder and the other challenging the territorial jurisdiction of the Ibadan court. He emphasized that the applications, filed just a day before, required detailed responses.
Adetunmbi argued strongly that the ex-chairmen lacked the legal standing to intervene since their joinder application had not yet been determined.
“Until the court rules otherwise, they remain strangers to this case,” he said.
But Gbadamosi countered, insisting that his clients had a constitutional right to be heard. He maintained that the court had no jurisdiction to prolong an interim order while its territorial authority was being contested.
A major highlight of the proceedings was new evidence presented by the plaintiffs through an affidavit sworn to by Mrs. Rachael Abidemi Aluko, Head of Local Government Administration in Boluwaduro Local Government.
She revealed that two individuals, Mr. Adebayo Oyekanmi and Mr. Lasisi Gbadebo Oyebode, had written to UBA, instructing the bank to deduct 15 percent of the councils’ statutory allocation and transfer it to a private law firm.
The letter identified them as Chairman and Treasurer of Boluwaduro Local Government.
Mrs. Aluko, however, described the claim as fraudulent. She explained that Oyebode was not a staff of the council and that the position of “Treasurer” did not exist in Osun’s local government administrative system.
According to the 2025 Guidelines for Local Government Administration in Osun State, only the Director of Finance and the Director of Administration & General Services are authorized signatories to council accounts.
She further identified the current officers holding these positions and tendered supporting documents.
This testimony raised serious concerns about attempts to siphon parts of the Osun State local government funds in defiance of the court’s injunction.
The plaintiffs reminded the court that the core issue—who the legitimate council chairmen are—remains before the Supreme Court in Suit No. SC/CV/773/2025.
They warned that releasing funds before the apex court delivers judgment could compromise justice.
Speaking after the hearing, Adetunmbi confirmed that the Supreme Court has fixed October 7, 2025, to hear the related case. He stressed the importance of preserving the disputed allocations.
“The order is necessary to protect the funds until the Supreme Court rules. Those who released the allocations knew the matter was already before the court.
“They should have respected the apex court. Let the Supreme Court decide, and everyone will comply,” he told reporters.
He also revealed documents showing a directive that 15 percent of the withheld funds, running into billions, be paid out as legal fees to a private individual.
Without the preservation order, he warned, much of the money would already have been diverted.
On the joinder application filed by the sacked APC chairmen, the Attorney-General of Osun State maintained that they had no business in the ongoing suit.
“They just filed two applications—one yesterday, another today. We will respond accordingly. But we will oppose the joinder because nothing links them to this case,” Adetunmbi stated.
Meanwhile, the ex-chairmen’s counsel insisted that their clients were directly impacted by the order and must therefore be joined as parties.
Observers say the case has far-reaching political implications for Osun State. The control of council allocations has long been a contentious issue, with rival parties accusing one another of manipulating grassroots resources for political advantage.
For now, the extension of the injunction effectively freezes movement of the Osun State local government funds.
Supporters of the ruling see it as a safeguard against corruption, while critics allege that the state government is using the court to block access to resources that should be flowing to the councils.
The controversy reflects a broader tension in Nigeria’s democratic practice—how to balance state oversight with the autonomy of local governments.
Until the Supreme Court delivers its verdict, the dispute remains unresolved, and the billions locked in UBA accounts remain inaccessible.
With the Supreme Court scheduled to sit on October 7, the case will soon reach a decisive stage.
Until then, Justice Akintola’s order stands as the protective barrier shielding the funds from unauthorized withdrawals.
As it stands, the fate of billions in Osun State local government funds rests on the verdict of the nation’s highest court.
That ruling will not only determine who controls the allocations but also shape the future of grassroots governance in Osun State.
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