Osun LG funds: Court extends account freezing order till October 9

…Supreme Court to hear another case on October 7

The Oyo State High Court sitting in Ibadan has extended its Order of Interim Injunction against the United Bank for Africa (UBA), maintaining a no-debit restriction on 30 bank accounts into which withheld Osun State local government allocations were paid by the Central Bank of Nigeria (CBN).

Justice Ladiran Akintola, in a ruling on Friday, extended the Order after hearing submissions from counsels present in court.

He explained that the extension was necessary to allow all parties in the suit No. 1/1149/2025: the Attorney-General of Osun State, the Osun State Local Government Service Commission, and United Bank for Africa Plc to enjoy fair hearing.

Counsel to UBA Plc was absent, but counsel to the court-sacked APC council chairmen, led by Kazeem Gbadamosi, SAN, holding the brief of Kunle Adegoke, SAN, who had just filed an application for joinder, was present.

However, counsel to the plaintiffs, Musibau Adetunmbi, SAN, argued that he needed time to study the two applications filed by the ex-chairmen’s counsel.

He explained that the application for joinder and another one challenging the court’s territorial jurisdiction were filed on Thursday and Friday respectively.

Adetunmbi, while citing points of law, insisted that the ex-APC council chairmen lacked the locus standi to challenge the court’s jurisdiction.

According to him, the ex-LG chairmen remained strangers to the case since their application for joinder had not yet been decided upon by the court.

On the need for extension of the interim order, Adetunmbi said: “I received the two applications yesterday (Thursday) and today (Friday). I will need time to study them as well as reply on points of law.”

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But counsel to the former APC local government chairmen and councillors faulted the description of his clients as strangers, arguing that they were directly affected by the court’s Interim Injunction of 26 September 2025.

He contended that, under the law, his clients had the right to be joined in the suit.

Gbadamosi, in the application filed on 2 October 2025, also challenged the territorial jurisdiction of the court to hear the matter.

Citing relevant authorities, he argued: “The court has no power in respect of a case in which its jurisdiction is being challenged to extend the order of life span that had expired.”

At the court sitting in Ibadan on Friday, further arguments were presented in the form of a further affidavit deposed to by a senior personnel member of one of the 30 local government councils.

In her deposition, Mrs. Aluko Rachael Abidemi, Head of Local Government Administration in Boluwaduro Local Government, revealed that certain individuals were making attempts to siphon council funds in defiance of a subsisting court order.

She cited an undated letter addressed to UBA by two individuals—Mr. Adebayo Oyekanmi and Mr. Lasisi Gbadebo Oyebode—who claimed to be Chairman and Treasurer of Boluwaduro Local Government. In the letter, they instructed the bank to deduct 15% of the statutory allocation and pay it into the account of a private law firm with UBA.

Mrs. Abidemi, however, informed the court that the said individuals had no legal authority to make such instructions. She stressed that Mr. Oyebode was neither a staff of Boluwaduro Local Government nor its Treasurer, as the position of “Treasurer” does not exist in Osun’s local government structure. 

According to her, by the 2025 Guidelines for Local Government Administration in the state, only the Director of Finance and the Director of Administration & General Services are recognised as signatories to local government accounts. She also identified the current officers holding those positions and tendered exhibits to confirm their status.

The claimants maintained that the matter of who the legitimate chairmen of the councils are remains sub judice before the Supreme Court in Suit No. SC/CV/773/2025, and warned that disbursing the funds under the present circumstances would undermine justice. 

Speaking with reporters after the sitting, counsel to the Attorney-General of Osun State, Adetunmbi (SAN), disclosed that a related case on the funds is already before the Supreme Court and has been fixed for hearing on 7 October.

On Friday’s ruling, he explained: “The crux of the matter is to safeguard the money in issue pending the Supreme Court’s determination on Tuesday, 7 October 2025.

“Our contention is that even those who paid the money knew the matter was already before the court. They should have respected the Supreme Court by holding on to the money.

“Let the Supreme Court speak, everybody will be happy, but for you to pay just like that is not acceptable.

“As I earlier informed the court, there is a letter directing that 15% of the withheld funds from March to September — running into billions of naira — should be paid as legal fees to one individual.

“In what manner? By what procedure? Without this preservation order, the rest of the money would have been gone by now.”

Commenting on the newly filed applications, he added: “They just served us with two applications. One was filed today, the other yesterday. I need time to react. The court has extended the Interim Injunction for the preservation of the disputed funds.”

On the joinder application, the Attorney-General maintained: “We are going to oppose the joinder because nothing concerns them with this case.”

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