The Osun State House of Assembly has charged former Governor Gboyega Oyetola, who now serves as the minister for marine and blue economy, with improperly overseeing the distribution of local government finances and meddling in council operations. The Assembly characterized his conduct as a peril to democracy, the rule of law, and governance at the local level.
This assertion was made during a press conference by the Speaker, Adewale Egbedun, on Sunday, which was disseminated via his official Facebook account.
Speaker Egbedun expressed dismay at the fact that individuals whose roles as local government officials were annulled by the courts, and whose terms ended on October 22, 2025, continue to occupy their posts and manage public funds.
He stated that these officials, all members of the All Progressives Congress (APC), are unlawfully in office and lack legitimacy under both the Constitution and recent court rulings.
“The presence of these individuals is without legal foundation. They have no constitutional, court, or legal validation. Their ongoing occupation of Local Government Secretariats is illegal and must not be overlooked,” the speaker emphasized.
The Assembly further alleged, without providing evidence, that Mr. Oyetola has been issuing directives regarding local government fund allocations, despite lacking any constitutional claim or statutory power to do so.
“Being related to the President of the Federal Republic of Nigeria does not grant anyone the authority to interfere in Osun State’s local government operations,” Mr. Egbedun asserted, emphasizing that governance should be based on legal frameworks rather than personal connections.
Allegations of Unauthorized Fund Distribution
The House claims to possess reliable information indicating that substantial amounts of council funds were disbursed under Oyetola’s directives. This includes N25 million allocated to each of the 30 APC local government chairmen, N12 million to each vice chairman, and N10 million to all 332 councillors.
Moreover, it has been claimed that N130 million was granted to selected traditional leaders in the state, and an astonishing N13 billion was distributed as legal fees to a private law firm representing the APC officials.
Egbedun noted that these lawyers were not contracted by the local governments, warning that paying their fees from council resources constitutes a serious misappropriation of public funds.
“The use of local government funds for legal fees pertaining to the private affairs of APC chairmen and councillors is illicit. We must question Mr. Gboyega Oyetola’s rationale for authorizing a payment of N13 billion to Layonu and co (private lawyers) with public funds. This is a criminal offense, and this House will insist that UBA PLC refunds every kobo,” he stated.
He indicated that the Assembly will demand full restitution of funds and specifically scrutinized the role of United Bank for Africa (UBA) in the transaction.
In its warning, the Assembly cautioned that any financial institution disbursing local government funds upon directives from unauthorized individuals will face potential prosecution for complicity in financial misconduct.
“The House hereby alerts the United Bank for Africa Plc (UBA) that any illegal disbursements of Osun State local government funds, regardless of whether purportedly approved by Mr. Gboyega Oyetola or another party, will be pursued diligently and treated as deliberate involvement in a financial offense.
“Funds distributed by UBA up to this point under the alleged unlawful directives from Mr. Oyetola will be treated as gifts and must not be deducted from Osun State Local Government Accounts,” Mr. Egbedun concluded.
The Assembly also highlighted that despite these alleged payments, local government employees have not received their salaries for the past year, affecting primary school teachers, nurses, health workers, council civil servants, retirees, and traditional leaders not associated with the APC officials.
The speaker expressed concern over reports that an additional N50 billion of council funds is set to be allocated under the pretext of project execution for political purposes.
The House reiterated that it has communicated several times with UBA and other financial institutions, asserting that according to Osun State laws, only designated officials appointed by the Local Government Service Commission are authorized signatories for council accounts.
The Assembly has cautioned that all funds released under what they regard as unlawful directives will be classified as the bank's losses and will not be charged to local government accounts.
They also alerted international partners and financial regulators that continued involvement in these alleged activities could lead to reputational and legal issues for the bank.
Mr. Egbedun commended Governor Ademola Adeleke for ensuring salary payments to local government workers over the past year despite the ongoing withholding of council allocations, stating that while the governor's efforts illustrate responsible leadership, they should not excuse the misallocation of funds intended for community development.
“Osun State is for its citizens. The well-being of nurses, teachers, health workers, local government staff, traditional institutions, and the general populace should never be sacrificed for political gains.
“Law must be upheld. No person outranks it, no bank is exempt, and no political interest should dominate it. This should be a democracy where no one stands above the law. Mr. Gboyega Oyetola must not continue to act as if he is beyond the law in Osun State,” the Speaker instructed.
According to Peoples Gazette, Mr. Oyetola has denied these claims.
Bolaji Akinola, Special Adviser on Media to Oyetola, responded to the accusations on behalf of the minister, categorically denying any involvement. “The effort to associate Dr. Oyetola with local government finances is a malicious campaign and an outright falsehood. The minister has no control over councils, has issued no orders to banks, and has not interfered in local government management. Local governments have complete financial autonomy as guaranteed by the Constitution and reaffirmed by the Supreme Court.”
Unfolding of the Osun LG Funding Conflict
The discord concerning local government operations and finances in Osun State traces back to contested leadership and varying interpretations of court orders.
In late 2022, the Federal High Court in Osogbo nullified the elections of local government chairpersons and councillors associated with the APC, a verdict that was later affirmed by the Court of Appeal.
The courts mandated the Osun State Independent Electoral Commission to conduct fresh elections, which occurred on February 22, 2025, leading to a new council leadership primarily aligned with the Peoples Democratic Party (PDP).
Despite these legal rulings, certain former APC chairpersons and councillors remained in their positions, creating disputed authority claims at the grassroots level, according to the Osun state government.
In the midst of this leadership struggle, the federal government, upon the suggestion of the Attorney‑General of the Federation, withheld the statutory allocations due to Osun's thirty local government councils from the Federation Account starting in February 2025.
These withheld funds, amounting to an estimated N130 billion, are intended to support essential services, pay primary school teachers, health personnel, council staff, and facilitate local governance.
The federal government contended that releasing the funds amidst ongoing lawsuits regarding the legitimate control of the councils could contravene court injunctions.
Governor Adeleke has consistently denounced the withholding of these funds as illegal and detrimental to ordinary citizens, asserting that the February 2025 elections were legitimate, the APC leaders were lawfully ousted by the courts, and these funds should be transferred into the accounts managed by the elected council leadership. On December 5, 2025, the Supreme Court criticized the seizure of local government funds but did not mandate their release due to a legal technicality presented in the case.
Governor Adeleke indicated that the continued presence of sacked APC officials in council secretariats undermines grassroots democracy and perpetuates the funding impasse, which he argues has forced the state to shoulder salary responsibilities to prevent a total collapse of local services.
On December 5, 2025, the Supreme Court dismissed the Osun State Government's lawsuit seeking to compel the release of the withheld allocations, ruling that the state government lacked the authority to sue on behalf of local governments, while simultaneously condemning the federal government for seizing the funds.
Meanwhile, the APC in Osun rejected the governor’s account, insisting that court rulings reinstated their former council leaders and that there is no lawful basis for the claim of illegal occupation of secretariats. The party also contended that the governor's litigation efforts have delayed the release of these funds, urging for resolution methods that would restore service delivery to local communities.
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