Osun crisis: Only civil servants can be signatories to LG accounts, NULGE warns FG

The Nigeria Union of Local Government Employees (NULGE) on Thursday warned the federal government against illegal directives that authorised some persons to be signatories to accounts of local government in Osun State.

NULGE President, Comrade Aliyu Haruna Kankara, while addressing the media in Abuja, directed the warning specifically to the Accountant General of the Federation, stating that only civil servants can be signatories to local councils’ accounts.

According to Comrade Haruna Kankara, a letter purportedly emanating from the Accountant General of the Federation directed any two of the Chairmen, Treasurers or Directors of Finance and Administration or Personnel Management in Osun state to endorse local government account earlier opened with the Central Bank of Nigeria (CBN).

He described such a directive as an aberration and in contravention with the law on Local Government Fiscal Autonomy.

He said, “Some State actors are creating atmosphere of discord and throwing clogs in the wheel of progress of Osun State Local Governments by working in contravention of the landmark judgement of July 14th, 2024 on Local Government Fiscal Autonomy where the Central Bank of Nigeria refused to respect the Supreme Court judgement on direct payment of the Local Government Allocation to their respective Accounts.”

Continuing, the NULGE President decried the move he claimed was to supplant extant law and place the running of the accounts of Osun State Local Governments in the hands of impostors while calling on President Bola Ahmed Tinubu to intervene.

The statement reads, “On 10th June, 2025, a letter signed by one Okolie Rita O. FCA, emanated from the Office of the Accountant General of the Federation, directing that any two of the Chairmen, Treasurers or Directors of Finance and Administration or Personnel Management in each of the Local Governments in Osun State should endorse an application letter for the opening and maintenance of the accounts earlier opened by the Central Bank of Nigeria (CBN) for each of the Local Governments, a directive which is an aberration and in contravention with the law on Local Government Fiscal Autonomy.

“As a Union, we are embarrassed to say the least, by this surreptitious move to supplant extant law and place the running of the accounts of Osun State Local Governments in the hands of impostors who are not recognized by the law.

“For clarity purpose, the law expressly and unequivocally stipulates that AUTHORIZED SIGNATORIES TO LOCAL GOVERNMENTS ACCOUNTS ARE CAREER OFFICERS SPECIFICALLY THE DIRECTORS OF FINANCE & SUPPLIES AND DIRECTORS OF ADMINISTRATION & GENERAL SERVICES; with the Local Government Chairmen and Heads of Local Government Administration to countersign for confirmation.

‘We are therefore inviting the attention of all well-meaning Nigerians particularly, the President and Commander in Chief of the Armed Forces, Asiwaju Bola Ahmed Tinubu to this affront on the law, barefaced attempts to rubbish his legacies, most especially the same battle you fought and won as a Governor of Lagos State some years ago. This intention and unscrupulous efforts of the saboteurs tends to deny the good people of Osun – State of the abundant benefits derivable from the Local Government Fiscal Autonomy which has not only endeared the Tinubu Government to the masses, but has also brought the dividends of good governance to the grassroots.

“We are also enjoining the Accountant General of the Federation from whose office the letter of 10th June, 2024 emerged to reconsider the stand of his office and be properly guided by the law on this issue.

“We state for the umpteenth time that the spirit and letter of the law does not leave signatories to the Local Governments Accounts open, but emphatically restricts the signatories to Director of Finance and Supply & Director of General Services and Administrations, with Local Government Chairmen and Heads of Local Government Administration to confirm all the payments.

“We call on the Central Bank of Nigeria (CBN) not to recognize any intending signatories to the Local Governments Accounts in Osun State other than career officers who are designated as DFAs & DGSAs as enshrined in the Local Government Financial Memorandum and Approved guidelines for the Administration of Local Government Areas in Osun State.

“We therefore appeal passionately to the Governor of CBN, Minister of Finance and Accountant General of Federation to as a matter of urgency to work together and ensure the release of the withheld Osun State Local Government Allocation from January 2025 to date to the legitimate Local Government Officers as delivered by the Appeal Court Judgement of 13th June, 2025 at Akure by Honorable Justice Peter Chudi Obiorah, JCA affirming the tenure of the democratically elected Peoples Democratic Party (PDP) Local Government Chairmen in Osun State (CTC).”

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