The Osun State chapter of the Association of Local Governments of Nigeria (ALGON) has accused the Central Bank of Nigeria (CBN) of colluding with members of the All Progressives Congress (APC) to unlawfully open and operate bank accounts in the names of local government areas within the state.
At a press briefing in Osogbo on Thursday, ALGON’s state chairman, Sarafadeen Awotunde, alongside other association officials, revealed that this controversy surfaced after Mr. Kunle Adegoke, an APC governorship aspirant and party legal counsel, admitted on a live TV program that such accounts exist and that APC members rather than authorized civil servants are signatories.
Awotunde condemned the practice as “a blatant illegality” and “an attempt to divert Osun people’s funds into private and political hands.”
He stated, “On August 28, 2025, during a live broadcast on ARISE TV Morning Show, Mr. Kunle Adegoke openly confirmed that the CBN has opened accounts in the names of Osun State local government councils with signatories who are not lawful civil servants but APC members unlawfully claiming local government positions.”
Awotunde emphasized that by law, only statutory civil servants such as Heads of Local Government Administration, Directors of Administration, and Directors of Finance are authorized signatories for council accounts.
“In democratic systems, politicians do not sign government cheques,” he added.
He further pointed out that APC council chairmen in the state lack legal legitimacy, referencing court rulings that annulled their elections.
A Federal High Court in Osogbo nullified their elections on November 30, 2022, a verdict upheld by the Court of Appeal in Akure on June 13, 2025. “They remain dismissed,” Awotunde asserted.
The ALGON chairman accused officials at the Osogbo CBN branch of barring genuine civil servants from opening local government accounts while accepting APC members as signatories.
“This constitutes a clear breach of the law, court rulings, banking regulations, and poses a threat to the welfare of Osun citizens whose funds are at risk,” he warned.
To back their claims, ALGON submitted certified documents including regulations on authorized signatories, withdrawal notices for certificates of return from ousted APC chairmen, valid certificates for ALGON leaders issued in February 2025, and the relevant court judgments affirming their legitimacy.
ALGON also questioned why Osun State is being singled out by federal authorities regarding local government fund disbursements.
“All other states continue to receive monthly allocations through the State-Local Government Joint Accounts as mandated by the 1999 Constitution. The Attorney General of the Federation and his allies appear to prioritize politics over the rule of law, which is regrettable,” the association said.
They pledged to resist what they described as a dangerous plot against the people of Osun.
“We assure Osun residents that ALGON will steadfastly defend its mandate and protect local government resources. Justice must prevail,” Awotunde concluded.
ALGON demanded an immediate investigation by the CBN leadership into the matter, urging scrutiny of Osogbo branch officials and calling on Mr. Adegoke to substantiate his claims.
Efforts to reach Mrs. Hakama Sidi-Ali, Acting Director of Corporate Communications at the CBN, for comment were unsuccessful.
In response, Osun APC spokesperson Kola Olabisi dismissed the PDP local government chairmen as impostors, asserting that the February 10, 2025 Court of Appeal judgment reinstated APC local government chairmen and councillors as the lawful council heads.
Olabisi said, “While it is not our practice to respond to unsigned statements, we clarify that the court ruling explicitly reinstated APC chairmen. The only recognized ALGON state chairman is Abiodun Idowu, as acknowledged at the national headquarters in Abuja.”
He urged the public to reject the PDP chairmen’s claims, labeling them impersonators falsely representing ALGON.
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