The Oyo State High Court has issued an interim injunction restraining United Bank for Africa (UBA) from releasing statutory allocations belonging to the 30 local government councils in Osun State.
Justice A. L. Akintola of Court 5 granted the order on Friday in suit number 1/1149/25, following an ex parte application filed by Osun State Attorney-General and Commissioner for Justice, Oluwole Jimi-Bada.
The state government approached the court after the Federal Government reportedly paid seized allocations for all 30 councils into accounts allegedly opened by All Progressives Congress (APC) chairmen and councillors whose tenure had earlier been nullified by the court.
In his ruling, Justice Akintola held that the plaintiffs demonstrated an urgent need for the court’s intervention, warning that any delay could cause “irreversible harm.” The judge granted the interim injunction pending the hearing of the motion on notice, fixed for October 3, 2025.
The order restrains UBA from paying out any local government funds or allowing any withdrawals from the 30 disputed accounts, or any other related accounts, until the substantive motion is determined.
Lead counsel to the state government, Mr. Musibau Adetunbi (SAN), in a covering letter dated September 26, 2025, formally notified UBA’s headquarters in Lagos and its Osogbo branch of the court’s decision, reminding the bank of its obligation to comply.
Local government allocations in Osun have been on hold since February due to a leadership tussle between the ruling Peoples Democratic Party (PDP) and the opposition All Progressive Congress (APC).
The APC argues that council chairmen and councillors elected on October 15, 2022, during former governor Adegboyega Oyetola’s administration, though initially sacked by a Federal High Court in Osogbo were reinstated by the Court of Appeal in Akure on February 10, 2025.
However, the PDP maintains that officials elected in the February 22, 2025 local government elections are the authentic leaders of the councils.
Meanwhile, the Osun branch of the National Union of Local Government Employees (NULGE) accused the Federal Government of releasing six months’ worth of allocations into the disputed accounts.
NULGE chairman, Dr. Nathaniel Ogungbangbe, condemned the move as an abuse of power, alleging that the Minister of Finance, Wale Edun; the Accountant-General of the Federation, Babatunde Ogunjimi; and the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, acted improperly by authorising the disbursement while court cases were still pending.
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