The Chairman of the Association of Local Governments of Nigeria (ALGON) in Osun State, Hon. Abiodun Samuel Idowu, has dismissed claims that the Central Bank of Nigeria (CBN) paid allocations for the 30 local governments in the state into private accounts.
Hon. Idowu, who is also the Executive Chairman of Ifedayo Local Government, described the allegations made by the Osun State Government and a faction of the National Union of Local Government Employees (NULGE) as “baseless, illogical, and a deliberate attempt to mislead the public.”
In a statement issued on Wednesday, ALGON clarified that following the February 10, 2025 judgment of the Court of Appeal in Akure—which reinstated the previously sacked local government chairmen—the financial structure of the councils had to be realigned. Since then, the reinstated chairmen, along with some civil servants who defied the strike action called by the factional NULGE led by Nathaniel Ogungbangbe, have been working closely with the CBN to ensure seamless and lawful management of council funds.
“The CBN never paid local government funds into any individual or private account. The process for activating and managing the accounts of local governments is rigid, transparent, and devoid of political influence. The narrative being pushed by the Osun State Government and the factional NULGE is simply false,” Hon. Idowu stated.
He further accused the Osun State Government of attempting to tarnish the image of the CBN by casting aspersions on the integrity of its leadership. “Slandering a national institution like the CBN and making disparaging remarks about the Governor of the bank is a national disgrace. It is unfortunate and should not be coming from a government,” he said.
Hon. Idowu also took issue with the recent comments made by the Commissioner for Local Government and Chieftaincy Affairs, Hon. Dosu Babatunde, calling them “an insult to the integrity of the Supreme Court.”
He referenced the Supreme Court’s landmark judgment of July 11, 2024, which reinforced the constitutional autonomy of local governments and ruled that federal allocations should be paid directly into the official accounts of the 774 local government councils across Nigeria—without interference from state governments.
“The Osun State Government’s desperation to subvert the Supreme Court’s judgment is not only unlawful but also undermines democratic governance and the rule of law,” the ALGON chairman added.
Commending sections of the local government workforce who chose not to participate in the politically motivated strike action, Hon. Idowu urged striking workers to return to their duty posts. “Their contributions are more valuable in service than in protest driven by partisan interests,” he noted.
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