The Central Bank of Nigeria (CBN) and the Office of the Accountant General of the Federation (OAGF) have refuted claims regarding the disbursement of withheld financial allocations to Osun State local government chairmen and councillors elected under the All Progressives Congress (APC) in 2022.
Both agencies informed the Federal High Court in Abuja that reports suggesting the release of these funds to the contested officials, whose terms are set to end on October 22, are unfounded and purely speculative.
Representing the Osun State Government, Senior Advocate of Nigeria (SAN) Musibau Adetunbi addressed Justice Emeka Nwite, asserting that the funds in question-currently under judicial review-were illicitly released to the APC local government chairmen between Thursday and Friday of the previous week.
Adetunbi emphasized that despite a court injunction mandating the maintenance of the status quo until the case is resolved, the CBN and OAGF proceeded to transfer the withheld allocations via special accounts established for the disputed chairmen at United Bank for Africa (UBA).
In response, the Osun State Government swiftly sought and obtained a restraining order from a High Court in Oyo State, effectively barring UBA from further disbursing the funds to the involved parties.
The counsel explained that this legal action was necessary because the Osun State judiciary was on strike, compelling them to approach the neighboring state’s court for relief.
While acknowledging that the restraining order had been served on the bank, CBN, and OAGF, Adetunbi noted that he did not have documentary proof available at the time of his court submission.
On their part, Senior Advocates Murtala Abdulrasheed and Tajudeen Oladoja, representing CBN and OAGF respectively, denied any involvement in releasing the funds to the APC local government officials, dismissing the plaintiff’s allegations as baseless rumors despite the existence of documentary evidence.
In a related development, the Osun State Government’s legal team filed a motion requesting the transfer of the case hearing back to Osogbo, arguing that since the court vacation had ended, the matter should be heard where it was originally filed to ensure justice, fairness, and due process.
Adetunbi criticized the earlier transfer of the case from Osogbo to Abuja during the court vacation, describing it as an act of bad faith lacking any urgent justification.
He further challenged the Chief Judge of the Federal High Court’s rationale for the transfer, which cited the defendants’ Abuja residency as the basis-an explanation he deemed inappropriate coming from the Chief Judge.
Conversely, CBN and OAGF maintained that the Chief Judge’s administrative decision to relocate the case to Abuja was legitimate and beyond contestation by the Osun State Government.
They urged the court to expedite the resolution of the suit in Abuja.
Justice Emeka Nwite has scheduled October 16 for a ruling on whether the case will be returned to Osogbo for further proceedings.
