Court extends account freezing order on Osun LG funds to October 9

The Oyo State High Court sitting in Ibadan on Friday extended its interim order against the United Bank for Africa (UBA), maintaining a no-debit restriction on 30 bank accounts into which withheld Osun State local government allocations were paid by the Central Bank of Nigeria (CBN).

Justice Ladiran Akintola ruled that the order, originally granted on September 26, be extended until October 9, 2025, to ensure a fair hearing for all parties in the case: the Attorney-General of Osun State, the Osun State Local Government Service Commission, and UBA Plc.

Although counsel to UBA was absent, Kazeem Gbadamosi (SAN), representing former All Progressives Congress (APC) council chairmen, appeared in court after filing applications for joinder and to challenge the court’s jurisdiction.

Counsel to the plaintiffs, Musibau Adetunmbi (SAN), said he needed more time to study the applications, which were filed on Thursday and Friday.

He maintained that the ex-chairmen lacked the locus standi to challenge the court’s jurisdiction as their joinder application had not yet been decided.

Gbadamosi, however, argued that his clients were directly affected by the interim injunction and therefore had the right to be joined in the suit. He also contended that the court lacked jurisdiction to extend the life of an expired order.

A further affidavit filed by Mrs. Rachael Abidemi, Head of Local Government Administration in Boluwaduro LGA, alleged that individuals attempted to siphon council funds in defiance of the subsisting order.

She cited a letter allegedly sent to UBA directing the deduction of 15% of statutory allocations into the account of a private law firm, which she said was unlawful since the signatories were not recognised officers of the council.

The plaintiffs argued that the dispute over the legitimate council chairmen is still pending before the Supreme Court in Suit No. SC/CV/773/2025, and warned that disbursing the funds would undermine ongoing proceedings.

Speaking after the ruling, Adetunmbi (SAN) said the extension was necessary to preserve the funds pending the Supreme Court’s hearing on October 7.

“The crux of the matter is to safeguard the money in issue pending the Supreme Court’s determination on Tuesday,” he said.

“Without this preservation order, billions of naira could have already been diverted under the guise of legal fees.”

The case was adjourned to October 9 for further hearing.

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