Osun LG Crisis: Don’t Release Allocations To Impostors, NULGE Warns CBN
The Osun State chapter of the Nigeria Union of Local Government Employees (NULGE) has called on the Central Bank of Nigeria (CBN) to refrain from releasing local government allocations to individuals it described as “impostors” who are not recognized local government officials.
Addressing a press conference in Osogbo on Wednesday, NULGE State President, Dr. Kehinde Ogungbangbe, expressed concern over an alleged attempt by the CBN to sidestep statutory procedures and channel funds through unauthorized individuals.
Ogungbangbe cited a letter dated June 10, 2025, from the Office of the Accountant-General of the Federation, titled “Payment of Statutory Allocation to Osun State Local Government and Opening of Account”, signed by one Okolie Rita O., Director of the Federation Account Department. The letter reportedly directed that new accounts be opened for the 30 local governments in Osun State, with the mandate that any two among the Chairman, Treasurer, Director of Finance and Administration, or Director of Personnel Management be signatories.
However, NULGE insists this directive contradicts existing laws governing local government financial operations.
“We have duly informed the Minister of Finance, the Accountant-General of the Federation, and the CBN Governor that the legally authorized signatories to local government accounts in Osun State are the Directors of Finance and Supplies and the Directors of Administration and General Services. These accounts must be counter-signed by the Head of Local Government Administration and the Council Chairmen, as stipulated by law,” Ogungbangbe said.
He alleged that there is a “grand plan” to pay local government allocations into the personal accounts of individuals who are not local government staff.
“We are urging the CBN and all relevant authorities to strictly adhere to the provisions of the law to prevent financial malpractice and avoid further complications,” he said.
The union reaffirmed its commitment to protecting due process and the autonomy of local governments, warning that any deviation from the law could spark a major crisis in the state’s governance structure.