The Osun State House of Assembly on Sunday accused a former governor of the state, Adegboyega Oyetola, of illegally diverting billions of naira belonging to the local governments to pay private lawyers and sacked state’s chairmen of the All Progressives Congress.
Mr Oyetola is the Minister of Marine and Blue Economy.
The assembly, in a press conference by its Speaker, Adewale Egbedun on Sunday, alleged that about ₦50 billion of LG funds had been illegally disbursed by Mr Oyetola, describing the situation as a violation of the constitution.
He said, “Mr Gboyega Oyetola, a nephew to President Tinubu, has no constitutional, statutory, or moral authority to control Local Governments funds, issue instructions on Local Government funds, influence banks, or direct security agencies in respect of Local Government 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 speaker alleged that payments authorised by Mr Oyetola included ₦25 million payment to each of the 30 illegal APC chairmen, ₦12 million payment to each of the 30 illegal APC vice chairmen; ₦10 million payment to each of the 332 APC councillors, ₦130 million each to selected traditional rulers in Osun State, and ₦13 billion legal fees payment to Layonu and Co., lawyers representing the illegal chairmen and councillors as 15 per cent of deposited funds.
He also stated that plans were underway to disburse another N50 billions of LG funds for political purposes, disguised as project funds, while governance at the grassroots continue to suffer.
The speaker added, “This House will not tolerate the diversion of public funds meant for salaries, healthcare, education, and community development into private hands to fund the election of a particular politician in Osun State.”
Alleging forceful and illegal occupation of the council secretariats by politicians whose tenure had expired, Mr Egbedun warned that local government workers had not been paid salaries in the past 12 months.
The speaker further accused the United Bank for Africa of conniving with Mr Oyetola to mismanage the LG funds, warning that the financial institution risks reputational damage if it continues on that path.
He said, “The House therefore warns the United Bank for Africa Plc (UBA) in very clear terms that all illegal disbursements of Osun State Local Government funds, whether purportedly authorised by Mr Gboyega Oyetola or any other individual, will be fully recovered and treated as deliberate complicity in a financial crime. All the funds that UBA has disbursed so far with the alleged illegal instructions of Mr Gboyega Oyetola is a GIFT to Mr Oyetola and cannot be deducted from Osun State Local Government Accounts.
“The international community, financial regulators, and institutional partners are hereby put on notice. If UBA Plc continues on this path, it risks reputational damage and legal consequences that go far beyond Osun State and Nigeria. No bank that claims global standards should be associated with the unlawful handling of public funds or the undermining of democratic institutions.’’
Commending Governor Ademola Adeleke for paying local government workers despite the alleged withholding of LG funds, the speaker insisted that the welfare of workers would not be sacrificed on the altar of politics.
He stated, “This House stands firmly with the people of Osun State. We will defend democracy. We will defend the rule of law. We will defend the sanctity of public funds. And we will not retreat until this illegality ends and justice prevails.”
Reacting, Dr Bolaji Akinola, Special Adviser on Media to Mr Oyetola, dismissed the lawmakers’ allegations.
Mr Akinola described the claims as fabricated, malicious and aimed at diverting attention from what he called governance failures in the state.
He said Mr Oyetola had no constitutional or statutory role in the administration, disbursement or control of local government funds anywhere in Nigeria.
He stated, “The attempt to link Dr Oyetola to local government finances is reckless propaganda and a deliberate falsehood. The Minister has no authority over councils, has issued no directives to banks and has not interfered in local government administration. Local governments enjoy full financial autonomy guaranteed by the Constitution and affirmed by the Supreme Court.’’
He said the assembly’s statement merely recycled claims earlier made by Mr Adeleke, which he described as discredited and misleading.
He recalled that the Supreme Court judgment of July 11, 2024, granted full financial autonomy to all local governments and barred state interference in their affairs.
According to him, the judgment is final, binding and cannot be overturned by political statements or threats.
Mr Akinola also cited a Court of Appeal judgment of February 10, 2025, which reinstated the duly elected local government chairmen in Osun.
He said the state government did not appeal the judgment, making it final and enforceable under the law.
He dismissed descriptions of the reinstated chairmen as “illegal,” saying they were lawfully elected and protected by subsisting court judgments.
He accused the Osun State Government of filing multiple court cases on the issue, creating administrative bottlenecks and delaying lawful council operations.
Mr Akinola also alleged that the state government instigated a prolonged strike by local government workers to frustrate council autonomy.
He warned public officials against spreading misinformation and urged respect for the rule of law and constitutional democracy.
Mr Akinola called on Nigerians and civil society groups to defend local government autonomy and resist attempts to undermine judicial decisions.
