Outrage In Osun As NULGE Rejects Alleged Plan To Divert Local Government Funds To APC Chairmen.
The Nigeria Union of Local Government Employees (NULGE) in Osun State has sparked widespread outrage by rejecting what it claims is a plot by the Central Bank of Nigeria (CBN) and the Accountant-General of the Federation (AGF) to divert local government allocations to private accounts controlled by All Progressives Congress (APC) chairmen. The controversy, which has deepened the ongoing local government crisis in the state, has prompted calls for urgent intervention by President Bola Tinubu to prevent financial mismanagement and uphold fiscal autonomy.
The row centres on a letter dated 10 June 2025, allegedly issued by the Office of the Accountant-General of the Federation and signed by Okolie Rita O., Director of the Federation Account Department. The letter reportedly directed that any two of the chairmen, treasurers, or directors of finance and administration in Osun’s local governments should endorse applications for opening and maintaining accounts with the CBN. NULGE has condemned this directive as an “aberration” and a violation of the law on local government fiscal autonomy, insisting that only career civil servants—specifically the Directors of Finance and Supplies and Directors of Administration and General Services—are authorised signatories to local government accounts, with chairmen and heads of local government administration countersigning for confirmation.
Addressing journalists in Osogbo, Dr Nathaniel Ogungbangbe, the Osun State NULGE President, warned that the alleged plan to transfer funds to accounts controlled by APC chairmen, described as “impostors” not recognised by law, threatens the integrity of local government finances. “There is a grand plan by the Central Bank of Nigeria to pay Osun State Local Government allocations into personal accounts of some impostors who are not local government staff,” Ogungbangbe stated, urging the CBN to adhere to legal protocols to avoid financial malpractice.
NULGE has taken the matter to court, filing a lawsuit at the Ilesa Division of the Osun State High Court to challenge the occupation of council secretariats by APC chairmen, whom they refer to as “Yes/No chairmen” from the 2022 election under former Governor Gboyega Oyetola. The union argues that their presence poses a threat to the safety of local government workers and has called for their ejection. The case has been adjourned to 17 April 2025, with substituted service granted.
The crisis stems from a prolonged dispute between the ruling Peoples Democratic Party (PDP) and the APC over control of Osun’s 30 local government councils. Following the February 2025 local government elections, which the Osun State Independent Electoral Commission (OSIEC) declared in favour of PDP candidates, APC chairmen, reinstated by a 10 February 2025 Court of Appeal judgement, forcefully occupied council secretariats. The PDP and NULGE maintain that the APC’s actions are illegal, citing a Federal High Court ruling from November 2022 that nullified the 2022 election for procedural irregularities.
The Osun State government, led by Governor Ademola Adeleke, has accused the CBN and AGF of conspiring to subvert a Supreme Court case addressing the issue. The state’s Commissioner for Information and Public Enlightenment, Oluomo Kolapo Alimi, described the alleged diversion of funds as an attempt to undermine the legal process. The government has also filed a suit at the Federal High Court in Osogbo, set for hearing on 4 June 2025, to restrain the CBN and AGF from opening accounts for the APC chairmen.
The APC has dismissed the allegations, with its state chairman, Abiodun Idowu, asserting that any payments would be made to appropriate accounts and not private ones. “We know the implications of public money going into private accounts,” Idowu said, rejecting claims of financial misconduct. The party has also accused NULGE’s national leadership of political bias, alleging that the union’s Osun chapter is aligned with the PDP and has refused to resume work since the APC chairmen’s reinstatement.
A faction of NULGE, operating under the Association of Concerned Local Government Staff (ACLGOW), has broken ranks, urging workers to return to their duties and accusing Ogungbangbe of politicising the union. The faction’s coordinator, Adedayo Adekunle, described the closure of council secretariats as “irresponsible” and vowed to challenge Ogungbangbe’s actions in court, arguing that they violate NULGE’s apolitical stance.
The crisis has led to significant disruptions, with local government workers withdrawing services since 17 February 2025, citing security concerns after violent clashes that resulted in six deaths. The Osun State House of Assembly has threatened legal action against the CBN and AGF if funds are paid into unauthorised accounts, while the PDP has appealed to President Tinubu to intervene and ensure justice prevails.
Governor Adeleke has urged calm, directing PDP-elected chairmen to avoid forceful reclamation of council secretariats and pursue legal avenues instead. “We will use all legal means to ensure that justice prevails,” said Sunday Bisi, the state PDP chairman, emphasising the party’s commitment to resolving the crisis peacefully.
As Osun grapples with this escalating crisis, stakeholders are calling for dialogue to prevent further unrest and ensure that local government funds serve the public interest. The outcome of the ongoing legal battles, particularly the Supreme Court case and the Federal High Court hearing in June, will likely determine the future of local government administration in the state. For now, the people of Osun await a resolution that prioritises transparency, accountability, and the rule of law.
