Court gives fresh judgement on Osun LG funds

The Oyo State High Court has restrained the United Bank for Africa (UBA) from disbursing funds belonging to the 30 Local Governments in Osun State, pending the determination of a substantive suit filed by the state government.

Justice A.L. Akintola issued the interim injunction on Friday, September 26, after an ex-parte application by the Attorney-General of Osun State.

The application followed allegations that the Federal Government had recently paid local government allocations into accounts opened by sacked All Progressives Congress (APC) council chairmen and councillors.

The orders barred UBA from releasing any statutory local government funds, whether in the contested 30 accounts or in other related accounts, until the hearing of the motion for an interlocutory injunction scheduled for October 3, 2025.

In his ruling, Justice Akintola held that the applicants had shown sufficient grounds for urgent court intervention, warning that any delay could result in “irreversible harm” to the state.

The state government’s lead counsel, Musibau Adetunbi (SAN), in a covering letter to UBA, reminded the bank of its duty to obey the court’s directive. Copies of the letter and the court order were delivered to UBA’s head office in Lagos and its Osogbo branch.

The legal tussle stems from a political crisis over control of local government structures in Osun, following the sack of APC council officials. The matter is now set for further hearing on October 3.