The Osun State chapter of the All Progressives Congress (APC) has criticized the State House of Assembly for overstepping its constitutional boundaries by instructing banks to block access to government-looting/” title=”Kano ADC Chieftain Slams Yusuf's Administration: "Stop Looting Your Own …!”>local government funds.
In a statement released on Tuesday and signed by spokesperson Kola Olabisi, the APC contended that the Assembly’s directives to financial institutions violate the Supreme Court’s ruling, which upholds the financial independence of local governments as a distinct tier of government.
This dispute emerged following disclosures from the state branch of the National Union of Local Government Employees (NULGE) that the Federal Government had disbursed six months’ worth of previously withheld allocations into accounts reportedly opened with United Bank for Africa (UBA) by APC-elected local government chairmen in October 2022. Nevertheless, an Oyo State High Court recently issued an injunction preventing the bank from releasing funds from accounts managed by local government officials who were removed by court order.
In reaction, the Osun State House of Assembly passed a resolution on Monday cautioning banks against allowing “unauthorized signatories” to access council funds. The Assembly declared any such access “illegal, unconstitutional, and without legal effect,” warning that financial institutions ignoring this directive would be considered complicit in fraudulent activities.
Justifying its stance, the Assembly referenced Sections 7 and 88 of the 1999 Constitution, emphasizing its oversight responsibilities over local government finances and its power to scrutinize public fund management. It also highlighted that the Office of the Auditor-General for Local Governments remains accountable to the legislature.
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“It is crucial to affirm that the Osun State House of Assembly is acting fully within its constitutional rights in its current measures to protect the financial interests of Osun State residents,” the Assembly stated through a release by the Chief Press Secretary to the Speaker, Olamide Tiamiyu.
Conversely, the APC dismissed the Assembly’s claims as “nonsense,” maintaining that the resolutions and letters issued by the legislature hold no legal authority. The party argued that the Assembly lacks the jurisdiction to assume control over local government financial management, labeling the move as a direct challenge to the Supreme Court’s ruling on local government autonomy.
“It is unacceptable for State Houses of Assembly to attempt to usurp financial oversight of local governments in any form or pretext. The essence of the Supreme Court’s autonomy judgment is to ensure that local governments operate as fully independent entities,” the APC asserted.
The party urged the Assembly to retract its communications to banks immediately, stressing that only formal legislation-not resolutions-possesses constitutional legitimacy in matters concerning financial oversight.
