The Oyo State High Court in Ibadan has extended its interim injunction restraining United Bank for Africa from allowing withdrawals from 30 bank accounts into which withheld allocations for Osun State local governments were lodged by the Central Bank of Nigeria.
The court’s decision aims to preserve the funds until the Supreme Court delivers its verdict on October 7, 2025, in a related case.
The extension was granted to ensure a fair hearing for all parties involved in the case, which includes the Attorney General of Osun State, the Osun State Local Government Service Commission, and UBA. The plaintiffs argue that premature disbursement of the funds would frustrate the course of justice and potentially lead to the misappropriation of public funds. According to Musibau Adetunmbi, counsel to the Osun State Attorney General, “Those who effected the payments knew the case was pending at the Supreme Court; they should have respected the apex court by holding back”.
The dispute revolves around the control and management of Osun State’s local government allocations. The Osun State Government had obtained an interim injunction against the accounts in a case instituted by the Attorney General of Osun State. The government claims that the funds were lodged in newly opened accounts in the names of the 30 councils by the court sacked All Progressives Congress Local Government chairmen and councillors.
Allegations of misappropriation have also been raised, with claims that certain individuals were attempting to siphon council funds in defiance of a subsisting court order. Mrs. Aluko Rachael Abidemi, Head of Local Government Administration in Boluwaduro Local Government, revealed that two individuals, Mr. Adebayo Oyekanmi and Mr. Lasisi Gbadebo Oyebode, who claimed to be Chairman and Treasurer of Boluwaduro Local Government, sent a letter to UBA instructing them to deduct 15% of the statutory allocation and pay it into the account of a private law firm.
Justice Ladiran Akintola adjourned the hearing of the substantive motion on notice for interlocutory injunction to October 9, 2025. The court granted an order of interim injunction restraining UBA from paying, releasing, disbursing, or tampering with funds in the disputed local government accounts. Additionally, the court mandated UBA to place a “Post No Debit” lien on the affected accounts pending the hearing of the substantive motion on notice.
The extension of the account freezing order is seen as a measure to ensure accountability and transparency in the management of public resources. As Adetunmbi noted, “Let the Supreme Court deliver its decision, and everyone will abide by it. But to disburse in the meantime is unacceptable”. The case highlights the need for effective governance and oversight in the administration of local government funds.
