By Rich Ade, Osogbo
The Osun State House of Assembly has alleged that about ₦50 billion from local government allocations in the state was illegally diverted by reinstated local council executives of the All Progressives Congress (APC), a situation it said has worsened hardship and stalled development at the grassroots.
Addressing journalists at the Assembly Complex in Osogbo, the Speaker, Hon. Adewale Egbedun, said the alleged diversion has further destabilised governance across the state’s 30 local government areas, insisting that the House has constitutional oversight and legislative authority over council administrations.
Egbedun claimed that funds meant for grassroots development were allegedly shared among political actors, stating that ₦25 million was paid to each reinstated council chairman, ₦12 million to vice-chairmen, ₦10 million to 332 councillors, ₦130 million to selected traditional rulers, and ₦13 billion paid to a law firm.
The Speaker further alleged that the Minister of Marine and Blue Economy, Dr Adegboyega Oyetola, alongside United Bank for Africa (UBA), connived to facilitate the alleged diversion of funds.
Reaffirming the Assembly’s position that the forceful occupation of council secretariats by what it described as tenureless politicians is illegal, Egbedun lamented that local government workers have allegedly gone unpaid for over 12 months.
According to him, primary school teachers, healthcare workers, local government civil servants, retirees, and traditional rulers not aligned with the former governor have received no salaries or allowances during the period.
“Any bank that releases local government funds on the instructions of unauthorised persons, regardless of who issued such instructions, acts unlawfully and exposes itself and its officers to criminal liability,” Egbedun said.
He warned UBA that all allegedly illegal disbursements would be recovered, stressing that any funds released based on what he termed unlawful instructions “will be treated as deliberate complicity in a financial crime.”
“All such disbursements are a gift to Mr Oyetola and cannot be deducted from Osun State local government accounts,” the Assembly declared.
However, the allegations were swiftly denied by the Minister of Marine and Blue Economy. In a statement issued by his Special Adviser on Media, Dr Bolaji Akinola, Dr Oyetola was emphatically exonerated from the claims, which were described as fabricated, malicious and politically motivated.
Akinola said local governments in Nigeria enjoy financial autonomy and are beyond the control of any individual or entity, including state governments and federal ministers. He added that Dr Oyetola has no constitutional or statutory role in the administration or disbursement of local government funds and has never issued directives to any bank regarding council finances.
“The attempt to link the Minister to local government finances is reckless propaganda designed to distract the public from the state government’s own failures and ongoing legal challenges,” Akinola stated.
Similarly, the Chairman of the Association of Local Governments of Nigeria (ALGON), Osun State chapter, Hon. Abiodun Idowu, faulted the Assembly’s position, saying lawmakers lacked proper understanding of grassroots governance.
Idowu urged the Assembly to seek clarification from Governor Ademola Adeleke, accusing the lawmakers of misleading the public with false claims.
