The Osun State House of Assembly has accused a former governor of the state, Mr Gboyega Oyetola, of illegally controlling and diverting local government funds, warning that such actions undermine the rule of law, democratic governance, and the welfare of people at the grassroots.
The allegation was made on Sunday during a press conference addressed by the House in Osogbo, where lawmakers condemned what they described as unlawful disruption of local government administration, illegal occupation of council secretariats, and the diversion of statutory local government allocations.
Addressing journalists, the House said it could no longer remain silent while individuals whose elections were nullified by courts, and whose tenure expired on October 22, 2025, continued to occupy local government secretariats and interfere with council finances.
“These individuals have no legal mandate. They are not recognised by law, by the courts, or by the Constitution. Their continued presence in local government secretariats is illegal and must not go on unchecked,” the Assembly stated.
The lawmakers insisted that the legislative powers of state houses of assembly over local government administration remain valid under Section 7 of the 1999 Constitution, adding that the Supreme Court judgment on financial autonomy for local governments did not invalidate existing constitutional provisions.
Turning specifically to Mr Oyetola, the Assembly alleged that he had no constitutional or statutory authority to issue directives on local government funds or influence banks and security agencies in relation to council administration.
“Being related to the President of the Federal Republic of Nigeria confers no legal power to interfere in the affairs of Osun State local governments. Nigeria is governed by laws, not family ties,” the House said.
The Assembly further alleged that large sums of local government funds were disbursed under Oyetola’s alleged directives, including ₦25 million to each of 30 illegal local government chairmen, ₦12 million to each vice chairman, ₦10 million to 332 councillors, ₦130 million to selected traditional rulers, and ₦13 billion paid as legal fees to private lawyers.
“Local government funds are being used illegally to pay lawyers who represented APC chairmen and councillors in their private capacities. The lawyers were not engaged by the local governments,” the House declared.
It demanded an explanation for the alleged ₦13 billion legal fees payment, describing it as criminal, while vowing to recover “every kobo” involved in the transaction.
Meanwhile, the lawmakers lamented that no salaries had been paid to local government workers in the last 12 months, including primary school teachers, nurses, healthcare workers, civil servants, retirees, and traditional rulers not favoured in the alleged disbursement pattern.
“Primary school teachers, zero. Nurses and healthcare workers, zero. Local government civil servants, zero. Retirees, zero,” the House said.
The Assembly also raised alarm over what it described as an alleged plan to disburse another ₦50 billion of local government funds for political purposes, warning that it would not tolerate the diversion of public funds meant for salaries, healthcare, education, and community development.
In a stern warning to financial institutions, the House said it had repeatedly written to banks, including United Bank for Africa Plc, clarifying that only career officers appointed through the Local Government Service Commission were lawful signatories to council accounts.
“Any bank that releases local government funds on the instructions of unauthorised persons acts unlawfully and exposes itself and its officers to criminal liability. Illegal disbursement of public funds is fraudulent. It is not banking practice. It is a crime,” the lawmakers said.
The Assembly warned that all illegal disbursements would be recovered and treated as deliberate complicity in financial crime, adding that any funds released on alleged illegal instructions would not be charged to Osun State local government accounts.
The lawmakers also put the international community and financial regulators on notice, cautioning that continued alleged violations could expose offending institutions to reputational damage and legal consequences beyond Nigeria.
Commending Governor Ademola Adeleke, the Assembly said the state government had made “extraordinary sacrifices” over the past year to ensure that teachers, nurses, healthcare workers, and local government staff continued to receive salaries despite the alleged withholding of council funds.
“That a state government had to shoulder this burden for 12 months is evidence of responsible leadership. However, such sacrifice must not become an excuse for criminal diversion of funds meant for local governments,” the House said.
Reaffirming its resolve, the Assembly declared, “Osun State belongs to its people. No individual is above the law. No bank is immune from it. No political interest can override it. This illegality must end, and justice must prevail.”
