Commercial banks within Osun State, notably the United Bank for Africa (UBA) PLC at the Osogbo branch, have received a stern warning from the Osun State House of Assembly. The caution pertains to the refusal to process any unauthorized financial directives linked to Local Government accounts.
Adewale Egbedun, the Speaker of the House, issued a letter on Thursday highlighting concerns over illicit financial orders reportedly emanating from several Local Governments, including Boluwaduro. These directives allegedly authorize deductions amounting to 15% of the September 2025 allocations, benefiting private individuals without proper sanction.
Egbedun emphasized that such financial maneuvers are unlawful, violate constitutional provisions, and lack any formal budgetary endorsement. He clarified that Local Government Treasurers do not possess legal authority as signatories on these accounts under current legislation.
The House reaffirmed that only the Local Government Chairman and the Director of Administration and General Services-both appointed through the Local Government Service Commission-are legally empowered to manage these accounts. This is in strict accordance with the Osun State Guidelines on Local Government Administration and the Public Financial Management Law of 2020.
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Egbedun further warned that any financial institution found facilitating unauthorized transactions will be subjected to severe legal consequences. These include blacklisting, issuance of arrest warrants, and referrals to anti-corruption bodies, as mandated by the Constitution, the Criminal Code Act, and the Money Laundering (Prevention and Prohibition) Act, 2022.
He stated, “This House has been informed that certain Local Government Areas in Osun State, notably Boluwaduro, have issued financial instructions permitting deductions from their accounts in favor of private entities. One such directive involves a 15% deduction from funds allocated in September 2025, purportedly authorized by the Local Government Treasurer and Chairman.”
”For clarity and official record, it must be noted that the Treasurer is not a legally recognized signatory under the prevailing Osun State laws regulating Local Government account operations. Section 14 of the Guidelines for Local Government Administration explicitly states that only individuals designated by the House of Assembly resolution-specifically the Local Government Chairman and the Director of Administration and General Services, both employed by the Local Government Service Commission-are authorized to operate these accounts.”
Egbedun underscored the critical public importance of this issue, urging that it be addressed with the highest level of urgency and seriousness.