The Osun State Government has raised the alarm over an alleged move by the Central Bank of Nigeria (CBN) and the Office of the Accountant General of the Federation (AGF) to pay local government allocations meant for the state into private accounts linked to individuals without lawful authority.
In a statement signed by the state Commissioner for Local Government and Chieftaincy Affairs, Hon. Dosu Babatunde, the state described the plan as not only unconstitutional but also a direct violation of Nigeria’s public finance laws and regulations.
According to the commissioner, the state government became aware of an alleged conspiracy between the two federal institutions aimed at undermining ongoing legal proceedings at the Supreme Court regarding the administration of local government funds in Osun.
“We are of the strong view that this act is not only illegal but a gross violation of due process and the Nigerian Constitution. It is an attempt to subvert justice and tamper with public resources for selfish ends,” Babatunde said.
He explained that in response to the development, the state government, through the Office of the Auditor General for Local Governments, had formally introduced the recognized accounting officers of the 30 local government areas—comprising Heads of Local Government Administrations (HLAs) and Directors of Finance, to the CBN.
However, the CBN’s Osogbo branch allegedly rejected the official list and is said to be proceeding with payment of funds to individuals purportedly loyal to the previous administration of former Governor Gboyega Oyetola.
Describing the move as “a constitutional shenanigan,” the commissioner appealed to President Bola Ahmed Tinubu to intervene, stating that the illegal diversion of funds could not have been approved by the president or the Minister of Finance.
“Any payment made into a private account in the name of local government allocation is null, void, and will not be recognized by the Osun State Government. We will explore every legal means to challenge such actions,” he warned.
Babatunde urged all relevant federal authorities to respect due process and desist from any action capable of undermining the rule of law or disrupting the financial autonomy of local governments in the state.
