Osogbo, Osun State – The Osun State House of Assembly has escalated its oversight role by issuing a stern warning to commercial banks operating in Osogbo, mandating them not to honor any unauthorized financial instructions concerning local government (LG) accounts.
The Speaker of the House, Honourable Adewale Egbedun, delivered the ultimatum via a letter, drawing attention to alleged unlawful financial directives that reportedly authorized significant deductions from LG allocations in favor of private individuals. The move marks a critical intervention by the legislature aimed at curbing financial misconduct at the grassroots level.
Banks Face Prosecution Over Financial Misconduct
The Assembly’s intervention follows reports of questionable financial activities in several LGs, including the Boluwaduro Local Government, where instructions were allegedly issued to deduct up to 15 percent of the September 2025 allocations.
Speaker Egbedun unequivocally described such financial actions as “illegal, unconstitutional and without any budgetary approval.”
The House reminded all financial institutions that treasurers are not legally recognized signatories to local government accounts under extant state laws. The Assembly reaffirmed that in line with the Osun State Guidelines on Local Government Administration and the Public Financial Management Law, 2020, only the Local Government Chairman and the Director of Administration and General Services are empowered to operate these accounts.
The letter warned of severe consequences for any financial institution found in breach:
“Any bank which processes instructions issued by unauthorised persons shall be deemed to have aided and abetted financial misconduct in violation of the Constitution, the Criminal Code Act, the Money Laundering (Prevention and Prohibition) Act, 2022, and other anti-corruption laws.”
Erring banks risk being summoned before the House, facing arrest warrants, and being referred to anti-corruption agencies for investigation and prosecution, as well as the risk of blacklisting. The Speaker stressed that any disbursement or diversion of public funds must originate from legally authorized signatories and be supported by an express budgetary provision approved by the House.
NULGE Defies Fake Resumption Notice, Urges Continued Strike
In a related development, the Nigeria Union of Local Government Employees (NULGE) in Osun State has publicly urged its members to disregard a sponsored story directing them to resume work.
Dr. Nathaniel Kehinde Ogungbangbe, the state NULGE Chairman, stated through the union’s publicity secretary, Mr. David Olalekan Owoeye, that the false claim was intended “to cause commotion and disorganise” its members.
The union confirmed that the alleged resumption directive did not emanate from the elected state NULGE executives or the national body. Dr. Ogungbangbe, therefore, urged all members to “stay away from office until further directive from the real elected state NULGE executives in the state,” reassuring them that the leadership remains committed to defending their interests.
The dual warnings from the legislative and labor bodies signal mounting pressure on financial entities and political actors regarding the proper governance and financial transparency of the state’s local government system.
