An Oyo State High Court has restrained the United Bank for Africa (UBA) from releasing funds lodged in 30 bank accounts belonging to Osun State local governments, pending the resolution of a leadership tussle between rival political factions.
The interim injunction, granted by Justice A.L. Akintola on Friday, followed an ex parte application filed by the Osun State Attorney-General and Commissioner for Justice, Oluwole Jimi-Bada.
The state government sought to block the disbursement of statutory allocations deposited into the disputed accounts by the Federal Government.
Justice Akintola held that the claimants had made a compelling case for urgent intervention, warning that any delay could cause “irreversible harm.”
The judge adjourned the hearing of the substantive motion on notice to October 3, 2025.
A letter from the state’s lead counsel, Musibau Adetunbi, SAN, dated September 26, 2025, and addressed to UBA’s head office in Lagos and its Osogbo branch, directed the bank to comply with the order until further notice.
The development stems from a prolonged legal battle between the Peoples Democratic Party-led Osun government and the All Progressives Congress.
While the APC insisted that its chairmen and councillors elected in October 2022, sacked by a Federal High Court but restored by a Court of Appeal in February—remain valid, the PDP maintains that those elected in February 2025 are the legitimate council leaders.
The Osun branch of the National Union of Local Government Employees (NULGE) has also waded into the controversy, accusing top federal officials, including the Minister of Finance, Wale Edun, and the Accountant-General of the Federation, Babatunde Ogunjimi, of abusing their offices by facilitating the transfer of allocations into the disputed accounts despite pending court cases.
Allocations to Osun LGAs have reportedly been withheld since February, further deepening tensions between the two political camps.