Osun ALGON Accuses CBN of Colluding in Unauthorized LG Accounts
The Osun State chapter of the Association of Local Governments of Nigeria (ALGON) has accused the Central Bank of Nigeria (CBN) of collaborating with All Progressives Congress (APC) members to unlawfully open and operate bank accounts in the names of local governments across the state.
Speaking at a press conference in Osogbo on Thursday, ALGON Chairman Sarafadeen Awotunde, flanked by other members, claimed the alleged scheme came to light after Kunle Adegoke, an APC governorship aspirant, admitted on live television that such accounts existed with APC members acting as signatories.
Awotunde described the situation as “a brazen illegality” and an “attempt to divert public funds into private and political pockets.” He noted that statutory civil servants, including Heads of Local Government Administration and Directors of Finance, are the only lawful signatories for council accounts, according to existing regulations.
He further highlighted that several APC council chairmen in Osun lack legitimacy, citing judicial rulings from the Federal High Court in Osogbo (November 30, 2022) and the Court of Appeal in Akure (June 13, 2025), which had nullified their elections.
Awotunde alleged that CBN officials in Osogbo turned away legitimate civil servants seeking to open accounts, instead approving APC members as signatories. He warned that such actions constitute “a blatant violation of banking rules and court judgments and pose a direct threat to the welfare of Osun residents.”
To support their claims, ALGON presented certified documents, including statutory signatory regulations, withdrawal of Certificates of Return from sacked APC chairmen, and judicial rulings affirming ALGON’s leadership.
The association also questioned why Osun appears to be singled out by federal authorities in the disbursement of local government funds, emphasizing that other states continue to receive allocations through constitutionally recognized joint accounts.
Awotunde assured residents of ALGON’s commitment to defending local government mandates and protecting public funds. He also demanded an urgent probe by the CBN into the Osogbo branch and called on Adegoke to substantiate his claims.
Efforts to reach CBN Acting Director of Corporate Communications, Mrs. Hakama Sidi-Ali, were unsuccessful as calls and messages went unanswered.
In response, Osun APC spokesperson Kola Olabisi dismissed the ALGON claim, labeling PDP-controlled local government chairmen as impostors.
He cited the February 10, 2025 Court of Appeal judgment in Akure that reinstated APC chairmen and councillors as the legitimate executive heads. Olabisi urged the public to disregard ALGON’s statement, insisting the association is misrepresenting leadership.
