The Osun State Government has raised the alarm over an alleged plot to divert constitutionally allocated funds meant for local governments into private accounts—describing the move as illegal, unconstitutional, and a direct violation of Nigeria’s public finance regulations.
According to a statement released on Wednesday by the State Commissioner for Local Government and Chieftaincy Affairs, Hon. Dosu Babatunde, the alleged scheme involves top officials of the Central Bank of Nigeria (CBN) and the Office of the Accountant General of the Federation. The Commissioner claims the plot is part of a wider effort to undermine ongoing legal proceedings at the Supreme Court regarding the control and disbursement of local government funds.
“The planned payment of Osun LG allocations into private accounts by CBN and the Accountant General’s Office is not only unconstitutional but also a gross violation of public finance laws,” the statement reads. “We consider this a deliberate attempt to sabotage lawful processes and enable financial misappropriation” Dosu said.
The Osun State Government says it had proactively submitted a list of verified accounting officers —including Heads of Local Government Administration (HLAs) and Directors of Finance — for all 30 local governments to the CBN. However, this list was reportedly rejected by the CBN’s Osogbo branch office, which allegedly planned to recognise a rival list linked to associates of former Gov. Gboyega Oyetola.
“We are disturbed by credible intelligence suggesting that names submitted without the input of legitimate LG accounting officers are being considered for fraudulent fund transfers,” Babatunde said. “This action, if carried out, would amount to economic sabotage and criminal misappropriation” he added.
Calling on President Bola Ahmed Tinubu to intervene, the state government emphasized that it does not believe the President or the Minister of Finance is aware of the controversial plan. It warned that any funds paid into unauthorised or private accounts will not be recognized as legitimate LG disbursements and that legal consequences will follow.
“Let it be known: any money paid into private accounts will not and shall never be regarded as Osun State Local Government funds. We will pursue every lawful means to hold all actors accountable,” Babatunde concluded.
The government urged federal authorities to uphold the rule of law and ensure that public funds are managed transparently and in accordance with constitutional provisions.
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