Tensions have escalated between the Osun State House of Assembly and All Progressives Congress local government chairmen over disputed handling of council funds, intensifying an ongoing power struggle concerning local government administration.
Assembly leaders allege that banks and APC-appointed council chairmen authorized improper fund withdrawals from local government allocations, with former Governor Adegboyega Oyetola reportedly connected to the transactions. The APC chairmen have rejected these accusations, characterizing them as baseless and driven by partisan interests.
Speaking to reporters at the House of Assembly Complex on Sunday, Speaker Adewale Egbedun stated that legislators uncovered what he termed “systematic illegal disbursement” of local government resources.
According to Egbedun, the disbursements included “N25m to each of the 30 local government chairmen, N12m to each vice chairman, N10m to each of the 332 APC councillors, N130m distributed among selected traditional rulers, and N13bn in legal fees representing 15% of deposited funds.”
Egbedun cautioned banks against processing local government fund releases based on instructions from unauthorized parties.
“Illegal disbursement of public funds is fraudulent. It is not banking practice. It is not political discretion. It is a crime. All funds disbursed so far by UBA on the alleged illegal instructions of Mr Oyetola shall be deemed a personal gift to him and must not be deducted from Osun State LG accounts,” he stated.
The Speaker also claimed APC chairmen have not paid salaries for 12 months to primary school teachers, nurses, healthcare workers, local government civil servants, and certain traditional rulers.
He further alleged plans exist to redirect N50bn in local government funds toward political activities masked as project spending.
“The House will not tolerate the diversion of public funds meant for salaries, healthcare, education, and community development into private hands to fund electioneering activities,” Egbedun said.
However, Osun ALGON Chairman Samuel Idowu quickly dismissed the Assembly’s claims, accusing lawmakers of spreading misinformation and defending former Governor Oyetola.
“The Assembly needs to tell the world how a minister would be diverting funds seized by the Federal Government,” Idowu questioned. “How can the same funds you claimed were withheld, stalling grassroots projects, now be alleged to have been diverted to private pockets? The Assembly must do better than pushing false narratives.”
Additionally, Oyetola’s Special Adviser, Dr. Bolaji Akinola, characterized the Assembly’s allegations as “fabricated and malicious,” describing them as “reckless propaganda designed to distract the public from the state government’s own failures and ongoing legal battles.”
Akinola emphasized that the former governor holds no constitutional or statutory authority over local government finances and has neither directed banks nor interfered in council operations. He accused the Assembly of rehashing discredited claims previously advanced by Governor Ademola Adeleke.
The Osun State government and the opposition APC have been engaged in a contentious dispute over local government control since February 2025. The standoff has disrupted grassroots governance, with both parties currently pursuing separate legal actions concerning the matter.
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