A court document obtained by our correspondent has revealed the controversial United Bank for Africa (UBA) accounts into which the federal government paid allocations belonging to the 30 Local Governments in Osun State.
The funds were lodged in newly opened accounts in the names of the 30 councils by the court-sacked All Progressives Congress (APC) Local Government chairmen and councillors, reports Nigerian Tribune.
The details were contained in a covering letter dated September 26, 2025, in which Osun State’s lead counsel, Musibau Adetunbi, SAN, notified UBA of an interim court order restraining it from releasing any funds from the accounts.
“Kindly find attached a copy of the interim order granted against your bank in the above named suit.
“Kindly be informed that all relevant processes have been duly served on your bank and your Legal Department has equally been notified of the Order. “However, out of abundance of caution, we believe that you are one of the authorities of the Bank that we should notify.
“The essence of this letter is just to remind you of your duty to comply with the above-stated order, so long as it subsists, and which obviously was made pending the hearing of Motion.
“Kindly note that the above order covers any statutory payment made to your bank for the benefit of the 30 Local Governments in Osun State.”
The Osun State government, through its Attorney-General, had challenged the payments in suit number 1/1149/25 at the Oyo State High Court, arguing that the federal government’s action undermines the Constitution and could plunge the state into financial and political crisis.
The development has since drawn reactions from stakeholders, with labour, political parties and the courts weighing in on the matter.
NULGE raises the alarm
Tribune Online reports that the Nigeria Union of Local Government Employees (NULGE) had earlier condemned the move, warning that the diversion of allocations into controversial accounts could cripple grassroots governance.
The union insisted that statutory funds should not be subjected to political manipulation as none of its members is a signatory to the new accounts as directed by the law.
“This is nothing but an attempt to short-change the people at the grassroots. These allocations are meant to improve lives in the local councils, not to fuel political battles. We demand immediate reversal of this anomaly,” NULGE president, Dr Nathaniel Ogungbangbe stated.
APC slams NULGE
Following the alarm by the Union, the All Progressives Congress (APC) in Osun dismissed the concerns, accusing NULGE of playing politics. The party argued that the federal government had followed due process in releasing the funds.
“The union is acting as a mouthpiece of the PDP government in Osun. Their so-called alarm is unfounded. The truth is that the allocations belong to the councils, and nobody can deny them their entitlements,” the APC said in a statement.
PDP challenges APC to disclose accounts
In a counter move, the Peoples Democratic Party (PDP) called on the APC to disclose full details of the accounts where the funds were paid, saying transparency was non-negotiable.
“The APC should publish the account numbers if it has nothing to hide. The people of Osun deserve to know where their money is kept. These allocations are not party funds; they are public resources,” the PDP maintained.
Court restrains UBA from releasing funds
Meanwhile, Justice A.L. Akintola of Court 5, Oyo State High Court, Ibadan, granted an interim injunction restraining UBA from releasing any money from the accounts.
Delivering the order on September 26, 2025, the judge ruled:
“Having carefully considered the motion Ex-parte together with the supporting affidavit and the Exhibits attached on the one hand as well as the written address of counsel and the affidavit of urgency filed along with the motion, this court is satisfied that the claimants/applicants have successfully made out a case for the urgent intervention of this court at this stage as any delay may foist on the claimants/applicants an irreversible harm, injury or situation of helplessness.
“In any event, it is only an interim order that the defendant/respondent will have the opportunity to possibly challenge once the defendant turns up to join issues with the claimants on the motion on notice for an order of interlocutory injunction already filed in this case. Accordingly, the interim orders of injunction sought are hereby granted as prayed, on the claimants/applicants.”
The matter was adjourned to October 3, 2025 for hearing of the motion on notice. UBA has since been served with the order, with the Osun government warning the bank of its “duty to comply” until the court decides otherwise.
CLICK HERE FOR FULL LIST OF THE ACCOUNTS.
