…Say payment into private accounts unconstitutional, a breach of financial law
…OSSIEC accuses AGF, IGP of backing ‘illegal hijack’ of councils
…Anonymous APC insider warns LG finance directors to avoid ‘backdating fraud’
… ALGON fires back at NULGE, accuses union of political bias
The Osun State Government and the Nigeria Union of Local Government Employees (NULGE) have jointly raised the alarm over an alleged plot by the Central Bank of Nigeria (CBN) and the Accountant-General of the Federation (AGF) to illegally channel local government funds into private accounts linked to individuals described as “impostors.”
At separate press briefings in Osogbo on Wednesday, both the Commissioner for Local Government and Chieftaincy Affairs, Hon. Dosu Babatunde, and the NULGE State President, Dr. Kehinde Ogungbangbe, warned that such action would be a constitutional violation and an open breach of Nigeria’s public finance laws.
NULGE President, Dr Ogungbangbe, revealed that a letter dated June 10, 2025, emanating from the Office of the AGF, instructed that Osun LG accounts be opened and managed by any two among Chairmen, Treasurers, or Directors of Finance, a directive he said contradicts legal provisions.
He said: “The law clearly states that authorised signatories to LG accounts are the Directors of Finance and Administration, and the Heads of Local Government Administration (HLAs), with the Council Chairman only confirming schedules.
“There is a grand plan to pay allocations into private accounts of those not in service. This must not happen. We remain committed to lawful unionism and await a peaceful resolution,” he said.
Also, Hon. Dosu Babatunde, in an official government statement, said intelligence reports indicate that the AGF and CBN offices are finalising arrangements to divert Osun LG allocations to former officials aligned with ex-Governor Gboyega Oyetola, contrary to the Supreme Court cases still pending.
“We are convinced this illegal act is being done without the consent of Mr President or the Finance Minister. Any such payment will be a gross violation of public finance law,” Babatunde declared.
He stated that the state government had already written to the CBN, submitting the list of legitimate accounting officers, HLAs and Directors of Finance across the 30 local governments. However, the Osogbo branch of the apex bank allegedly rejected the list.
“This is constitutional sabotage, and Osun will pursue legal redress without hesitation if state funds are paid into private hands,” Babatunde warned.
Meanwhile, Chairman of the Osun State Independent Electoral Commission (OSSIEC), Mr Hashim Abioye, Esq., also waded into the crisis, accusing the AGF and Inspector-General of Police of lending federal power to those illegally attempting to reclaim LG offices.
“The AGF and IGP are backing the illegal takeover of local government offices by sacked officials. This is brigandage and a complete breach of the rule of law,” Abioye said.
He restated that the 2022 LG election conducted by OSSIEC was nullified by a Federal High Court judgment on November 30, 2022, a ruling later upheld by the Court of Appeal on January 13 and June 13, 2025.
“The February 2025 LG election is the only valid one. Certificates of Return were issued to elected chairmen and councillors. Those from 2022 have no legal mandate and must stop parading themselves as elected officials,” he added.
Abioye also confirmed that the Commission has officially informed state institutions and the CBN of this position.
Anonymous APC insider warns against document forgery
Adding to the tension, an anonymous All Progressives Congress (APC) chieftain has issued a warning to Directors of Finance across the 30 LGAs not to attend a scheduled meeting at the Auditor General’s office in Osogbo.
“They’ve been asked to bring two official letterheads each — while still on strike. This could be used to backdate documents or commit financial crimes. Anyone who cooperates risks prison,” the source said.
He also claimed that security agencies have been briefed and are monitoring the situation.
While the APC claims that the Appeal Court ruling of February 10, 2025, reinstated their 2022 council officials, the Osun State Government maintains that no court reinstated anyone, and the only enforceable judgment remains the 2022 Federal High Court nullification of that election.
Osun officials have vowed not to be intimidated into accepting what they call an “illegitimate and politically driven hijack” of the local government system.
“We didn’t come here to play politics. We came to serve. And no one will force us to violate the Constitution,” Abioye added.
In a rebuttal to the NULGE and government positions, the Chief of Staff to the Osun ALGON Chairman, Abidemi Ayandayo Yusuf, issued a rejoinder condemning what he described as the politicisation of unionism by the state chapter of NULGE.
He accused the union of prolonging a politically motivated strike under the guise of insecurity, despite government efforts to provide security across LGAs.
“For over two months, we’ve ensured maximum security. Yet they refuse to resume duty. How can someone who says they’re on strike still try to sign official documents? That’s a contradiction,” Yusuf queried.
He further alleged that some civil servants were being used by the ruling PDP government in the name of loyalty, stressing that loyalty to party should not override loyalty to duty.
“If they insist on striking, then they should fully commit to it and not try to enjoy the same system they’re boycotting. We are not shaken,” he declared.
Yusuf added that the current LG chairmen are ready to welcome all workers back after nearly five months of absence but warned that the government will continue to function with or without them.
“We are committed to serving the grassroots. The local government system will survive, function and deliver dividends of democracy regardless of any sabotage,” he added.