Osun Council funds: Court adjourns, freezes accounts

News Update

THE legal battle over the withheld funds of Osun State’s 30 local government councils suffered another delay on Wednesday, as the Oyo State High Court in Ibadan extended its interim order freezing the councils’ accounts with United Bank for Africa (UBA) Plc.

Presiding over the matter, Justice Ladiran Akintola ruled that the “Post No Debit” (PND) order previously placed on the accounts will remain in force until Friday, October 10, 2025, when the case is scheduled to resume.

“The case is adjourned till Friday for further hearing, while the interim injunction shall continue to subsist,” the judge said, citing the constitutional right to a fair hearing as enshrined in Section 36 of the 1999 Constitution.

The proceedings were characterised by heightened legal activity, as various political interests sought to join the case.

Chief Musibau Adetunmbi, SAN, representing the Osun State Attorney-General, informed the court that the People’s Democratic Party (PDP) had filed a joinder application.

He, however, indicated his client’s intention to oppose the move.

“Even though the PDP has a constitutional right to fair hearing, we believe this case is narrow and straightforward. The joinder will only complicate matters unnecessarily,” Adetunmbi argued.

The All Progressives Congress (APC) also participated through its former council chairmen. Their legal representative, Mr Kasim Gbadamosi, SAN, announced plans to withdraw a second joinder application, noting that a related matter was already pending before the Supreme Court.

“This suit amounts to an abuse of judicial process since a similar issue is currently being adjudicated at the apex court,” Gbadamosi submitted.

In a notable intervention, UBA’s counsel, Mutalib Adebayo Ojo, SAN, aligned with the APC’s position, urging the court to suspend proceedings indefinitely pending the Supreme Court’s decision.

“We’re merely custodians of the funds and not involved in the political dispute. This court should stay proceedings until the Supreme Court decides,” Ojo told the court.

Filed as Suit No. 1/1167/2025, the matter centres on the control and disbursement of local government funds following the departure of APC-led councils and the swearing-in of a new PDP-led administration in Osun State.

The plaintiffs had previously obtained interim injunctions restraining UBA from processing transactions on the accounts of all 30 councils, from Atakumosa East to Osogbo.

The court further issued a mandatory order compelling UBA to enforce the freeze via a Post No Debit restriction, effectively halting any transactions until a final determination is made.

Justice Akintola is expected to rule on the various joinder applications and other preliminary objections when the court reconvenes on Friday.

Meanwhile, a parallel suit filed by PDP-backed local government chairmen is also set for hearing on the same day, raising the prospect of a pivotal legal confrontation.

With billions of naira at stake, the eventual outcome may have far-reaching consequences, not only for the financial autonomy of Osun’s local councils but also for the broader governance structure at grassroots level across Nigeria.

All eyes now turn to the Ibadan courtroom, where Justice Akintola presides over a case that could reshape the dynamics of local government finance in the country.