Osun State House of Assembly has warned commercial banks in the State not to honour unauthorized financial instructions on local government accounts.

Speaker of the House, Honourable Adewale Egbedun, who dropped the warning via a letter, drew attention to unlawful financial directives allegedly issued in some local governments, including Boluwaduro Local Government, authorizing deductions of up to 15 percent of September 2025 allocations in favour of private individuals.

He described such actions as illegal, unconstitutional and without any budgetary approval, stressing that treasurers are not legally recognized signatories to local government accounts under extant laws.

The House reaffirmed that only the local government chairman and the Director of Administration and General Services, both officers of the Local Government Service Commission are empowered to operate such accounts in line with the Osun State Guidelines on Local Government Administration and the Public Financial Management Law, 2020.

Citing its resolution of September 29, 2025, the assembly reiterated that no withdrawals or deductions may be made from local government accounts without strict compliance with the constitution, internal regulations and approved budgets. It further warned that any financial institution processing unauthorized instructions would be deemed complicit in financial misconduct in violation of multiple national anti-corruption laws, including the Money Laundering (Prevention and Prohibition) Act, 2022, and would face the weight of the law.

The speaker cautioned that erring banks risk severe consequences, including summons before the House, arrest warrants and referrals to anti-corruption agencies for investigation and prosecution.

The letter reads:” I write with reference to our earlier letter dated September 29, 2025, by which the assembly, pursuant to its oversight powers under Sections 128 and 129 of the 1999 Constitution (as amended), demanded disclosure of all local government accounts domiciled with your bank.”

“This House has been made aware that certain local government areas in the State, including but not limited to Boluwaduro Local Government, have issued financial instructions authorizing deductions from their accounts in favour of private parties. One such instance is the instruction to deduct 15 percent of funds received in September 2025, allegedly authorized by the local government’s treasurer and chairman.”

“Apart from the fact that such expenditure is illegal and does not conform to the provisions of internal regulations, it is equally not provided for in the 2025 approved budget of the local governments.”

“Let it be stated for record purposes that the treasurer is not a legally recognized signatory under the extant Osun State laws governing the operation of local government accounts. Specifically, Section 14 of the Guidelines for the Administration of Local Government stipulates that only persons listed by the assembly resolution, which stipulates that only the local government chairman, Director of Administration and General Services, as officers under the employment of the Local Government Service Commission, are authorized to operate such accounts.

“These provisions are further supported by the Osun State Public Financial Management Law, 2020.

“Furthermore, the resolution of this House passed on Monday, September 29, 2025, affirms that no withdrawals or deductions may be made from local government accounts without compliance with the Constitution, the Guidelines and the Financial Management Law.

“The said resolution also declared that any bank which processes instructions issued by unauthorized persons shall be deemed to have aided and abetted financial misconduct in violation of the Constitution, the Criminal Code Act, the Money Laundering (Prevention and Prohibition) Act, 2022, the Economic and Financial Crimes Commission Act, and the Independent Corrupt Practices and Other Related Offences Commission Act.

“Accordingly, you are hereby formally warned not to honour any instruction, verbal, written or electronic authorizing disbursement, deduction or diversion of public funds from any local government account domiciled in your bank unless such instruction originates from the legally authorized signatories and is supported by express budgetary provision approved by the House.

“Any transaction in breach of this position shall attract the constitutional and legal consequences, including summons before the House, the issuance of warrants of arrest and referrals to anti-corruption agencies for investigation and prosecution. Your institution will also stand the risk of blacklisting and recommendation for withdrawal of the privilege to operate government accounts.

“You are reminded that your response to our initial request remains due within the 24-hour timeframe already communicated.

“This matter is of public interest and must be treated with the utmost urgency and seriousness it deserves”, it said.

Meanwhile, the Nigeria Union of Local Government Employees (NULGE) in the state, on Thursday, told members of the union to disregard the sponsored story of a particular political party that said leadership of the union has directed its workers to resume work.

The union’s chairman, Dr. Nathaniel Kehinde Ogungbangbe, in a statement made available by Mr. David Olalekan Owoeye, the state publicity secretary in Osogbo, said the claim was to cause commotion and disorganize the well – informed NULGE members in the state.

“The union is using this medium to inform our well-respected members to know that such information did not emanate from the elected NULGE executives under the leadership of Dr. Ogungbangbe and there is no directive of such from the national body of our union under the leadership of Haruna Aliyu Kankara.

“It was authored to destabilize the peace of the state through which our members could be massacred and reduce our membership strength.”

Therefore, the union is urging all members to see the write-up as the handiwork of the killers of destiny which needed to be jettisoned and stay away from office until further directive from the real elected state NULGE executives in the state.

“It is equally pertinent to note that NULGE has not directed our members to resume work.

“The union executives will continue to defend the interest of our members,’’ he said. (Nigerian Tribune)