A significant political and financial controversy has erupted in Osun State, Nigeria, following the revelation that the Federal Government paid statutory allocations meant for the state's 30 Local Governments into newly opened accounts at the United Bank for Africa (UBA). These accounts, controversially opened in the names of the councils, were reportedly operated by All Progressives Congress (APC) chairmen and councillors who had been previously sacked by court orders. The development has triggered widespread reactions from various stakeholders, including the Nigeria Union of Local Government Employees (NULGE), the APC, and the Peoples Democratic Party (PDP), with the judiciary stepping in to restrain the bank from disbursing the funds.

Court documents obtained by Tribune Online detailed the specific UBA accounts involved in the contentious transactions. A covering letter dated September 26, 2025, from Osun State’s lead counsel, Musibau Adetunbi, SAN, formally notified UBA of an interim court order. This order explicitly restrained the bank from releasing any funds from the accounts, which were challenged by the Osun State Government, through its Attorney-General, in Suit No. 1/1149/25 at the Oyo State High Court. The state government argued that the Federal Government’s actions undermined the Constitution and threatened to plunge Osun into severe financial and political instability.

The Nigeria Union of Local Government Employees (NULGE), Osun State chapter, led by Dr. Nathaniel Ogungbangbe, vehemently condemned the payment, describing it as an "unprecedented abuse of power" and "bizarre." Dr. Ogungbangbe accused key Federal Government officials, including the Minister of Finance, the Accountant-General of the Federation, and the Attorney-General of the Federation, of unlawfully releasing Osun’s local government allocations for March to September 2025 into these illegal accounts. NULGE insisted that statutory funds should not be subjected to political manipulation and highlighted that none of its members were signatories to the new accounts, as legally required. The union warned that such actions could cripple grassroots governance and called for an immediate reversal of what it termed an "anomaly," emphasizing that the funds were meant to improve lives at the local level.

In response to NULGE’s alarm, the Osun State chapter of the All Progressives Congress (APC) dismissed the concerns, accusing the union of playing politics and acting as a mouthpiece for the PDP government. Chief Kola Olabisi, the party’s Director of Media and Information, stated that the Federal Government had followed due process in releasing the funds. The APC also referenced a Court of Appeal judgment dated February 10, 2025, which they claimed reinstated the APC local government council chairmen and councilors, and asserted that this judgment remained in force without appeal. They vehemently denied that the allocations were paid into accounts of individual APC members or chieftains, maintaining that the funds were lodged in legitimate "local government councils’ accounts."

However, the Peoples Democratic Party (PDP) countered the APC's claims, noting what it perceived as an admission by the APC of receiving federal allocations. The PDP challenged the APC to publicly disclose the full details of the accounts where the funds were paid, including account numbers, signatories, and the exact amounts in each account, emphasizing that transparency was non-negotiable. PDP Chairman Sunday Bisi described the situation as a potential "greatest heist in the history of Nigeria" if full disclosure was not provided, pointing out that statutory officers of the local governments, the state accountant general, auditor-general for local governments, and the ministry of local governments were reportedly unaware of the payments.

The judiciary has intervened decisively in the matter. On September 26, 2025, the Oyo State High Court granted an interim order of injunction against UBA. The judge, having considered the urgency and potential for "irreversible harm, injury or situation of helplessness" to the claimants, ruled in favour of restraining the bank. This interim order allows UBA an opportunity to challenge it during the hearing of the motion on notice, which was adjourned to October 3, 2025. This builds upon an earlier Federal High Court order on May 15, 2025, which mandated all parties to maintain the status quo regarding the funds, a directive acknowledged by the Central Bank of Nigeria. The Osun State Government has since warned UBA of its duty to comply with the court order until a definitive decision is made. The court ruling underscores the ongoing legal battle over the legitimacy of these payments and the authority of the sacked officials to operate such accounts.

The specific UBA accounts for the 30 Local Governments implicated in the controversy include: Atakunmosa West/East LGA (1028534740, 1028534661), Ayedaade LGA (1028534726), Ayedire LGA (1028534733), Boluwaduro LGA (1028534678), Boripe LGA (1028534757), Ede North LGA (1028534764), Ede South LGA (1028534771), Egbedore LGA (1028534788), Ejigbo LGA (1028534795), Ife Central LGA (1028534805), Ife East LGA (1028534685), Ife North LGA (1028534812), Ife South LGA (1028534692), Ifedayo LGA (1028534829), Ifelodun LGA (1028534836), Ila LGA (1028534843), Ilesa East LGA (1028534850), Ilesa West LGA (1028534702), Irepodun LGA (1028534867), Irewole LGA (1028534874), Isokan LGA (1028534881), Iwo LGA (1028534898), Obokun LGA (1028534908), Odo-Otin LGA (1028534915), Ola-Oluwa LGA (1028534922), Olorunda LGA (1028534939), Oriade LGA (1028534719), Orolu LGA (1028534946), and Osogbo LGA (1028534953). This explicit list underscores the detailed nature of the allegations and the extent of the alleged diversion.