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Tension Rises Over Osun LG Funds As Court Extends Account Freeze

Ijeoma by Ijeoma
October 15, 2025
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Tension Rises Over Osun LG Funds As Court Extends Account Freeze
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The ongoing legal tussle regarding the control of Osun State’s local government funds took a new turn on Thursday as the Oyo State High Court sitting in Ibadan extended the order freezing 30 bank accounts connected to the disputed allocations.

The presiding judge, Justice Ladiran Akintola, issued the order while adjourning the case to November 27, 2025, for a ruling on applications challenging the court’s jurisdiction, alongside motions filed by the All Progressives Congress (APC) and the Peoples Democratic Party (PDP) seeking to join as interested parties.

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In a key ruling, Justice Akintola rejected the application by UBA Plc requesting an indefinite adjournment (sine die) of the matter, as prayed by the bank’s lead counsel, Ojo Adebayo (SAN), pending the resolution of a similar case currently before the Supreme Court.

The judge ruled that such a request could not be considered while jurisdictional and joinder issues remained pending, emphasising the importance of handling the case within a reasonable timeframe.

Lead counsel for the claimants, Mr. Musibau Adetunmbi (SAN), called on the court to dismiss the motions filed by both the APC and the PDP, arguing that neither party possessed the legal right to be part of the proceedings.

“The APC is a complete stranger to this matter and therefore lacks the locus standi to file any application,” Adetunmbi stated, maintaining that the Oyo State High Court had the proper jurisdiction to determine the dispute.

However, counsel for the APC, Mr. Kazeem Gbadamosi (SAN), contested the court’s authority, asserting that under the 1999 Constitution, only local government councils were empowered to manage local government funds. He further questioned the court’s territorial jurisdiction.

Lawyers representing the Attorney General of Osun State countered Gbadamosi’s submission, referring to judicial precedents that affirmed the court’s competence to hear the matter.

After hearing arguments from all sides, Justice Akintola adjourned proceedings for a ruling on both the jurisdictional objection and the motions for joinder.

In a separate case, the judge transferred another suit filed by the PDP against UBA Plc to the Chief Judge of Oyo State for reassignment to a different court.

Tags: account freezenewsOsun state
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