…as commercial banks decline attempts to freeze existing council accounts
The Central Bank of Nigeria (CBN) has rejected a request by sacked local government chairmen in Osun State to open new council accounts for the deposit of federal allocations, citing lack of due process and absence of a valid court order.
According to sources familiar with the development, the dismissed officials, who were removed by a Federal High Court ruling, had written to the apex bank claiming they had been reinstated by a Court of Appeal judgment. They reportedly sought the opening of new accounts and attempted to influence commercial banks to freeze existing ones currently operated by the state-recognized interim local government leadership.
However, the CBN rebuffed the request, demanding a copy of the purported reinstatement order. The dismissed chairmen, according to findings, only submitted an enrolled order without attaching the full judgment of the Court of Appeal or any proof that the earlier sacking had been vacated.
The apex bank, reportedly well-briefed on the ongoing legal tussle surrounding Osun’s local government leadership, questioned the legitimacy of the request and asked for clarification on the legal basis for the actions being requested.
Commercial banks also declined to act on the letter sent by the sacked chairmen, citing the absence of proper authorization or any directive from a competent authority backing such a move.
As of press time, the CBN has not received any further response from the embattled chairmen, who have reportedly failed to provide the requested court documentation.
