Osun State accuses AGF and CBN of planning to divert local government funds into private accounts, warns of legal consequences, urges presidential intervention
Osun accuses AGF CBN LG funds diversion in a strongly worded statement alleging that key federal institutions are colluding to pay statutory local government allocations into private accounts of unauthorised individuals.
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The state government, through its Commissioner for Local Government and Chieftaincy Affairs, Dosu Babatunde, accused the Office of the Accountant General of the Federation and the Central Bank of Nigeria of bypassing proper channels to divert public funds. The funds in question are due to Osun’s 30 local governments.
According to the statement obtained on Wednesday, the state alleged that the plan, if executed, would amount to a violation of public finance laws and was deliberately designed to undermine cases already before the Supreme Court of Nigeria.
Babatunde noted that the CBN’s Osogbo branch had rejected a list of properly authorised local government accounting officers, raising suspicions that it intended to act on submissions from loyalists of former Governor Gboyega Oyetola.
Reacting to the allegations, Abiodun Idowu, chairman of the All Progressives Congress LG chairmen in the state, denied any wrongdoing.
He said, “Any money that would be paid would go to the appropriate account. Maybe those who raised the allegation were not referring to us.”
The state government urged President Bola Tinubu to investigate the matter, asserting that the alleged move was being made without his knowledge or the consent of the Minister of Finance.
Meanwhile, the Nigerian Union of Local Government Employees (NULGE), Osun chapter, presented a letter dated June 10, 2025, from the AGF’s office, requesting the CBN to open accounts for the LGs under questionable signatory arrangements.
NULGE President Dr. Nathaniel Ogungbangbe warned that only authorised LG officers—Directors of Finance and Supplies and Directors of Administration and General Services—should sign off on public funds, with HLGAs and Chairmen confirming.
In a related development, Osun State Independent Electoral Commission (OSIEC) Chairman, Hasim Abioye, reaffirmed that the February 2025 local government elections remain legitimate and unchallenged in court.
He accused federal authorities of aiding former officials to forcefully re-enter office after losing a June 13 court ruling.
Abioye decried what he called the “shameless boldness” of sacked officials, who were seen celebrating publicly and intimidating staff at LG secretariats.
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The state government vowed to resist any illegal disbursement of public funds and promised to take all legal steps necessary to prevent financial malpractice.
