The Osun State chapter of the All Progressives Congress, on Sunday, confirmed that the Federal Government had released the withheld six-month allocations for the state’s local government areas.
The APC, however, denied that the funds were paid into the private accounts of council chairmen elected on the platform of the APC in October 2022.
It said the funds were paid “into the local government councils’ accounts.”
However, the ruling PDP, which said it was not aware of the payment, demanded that the APC disclose the details of the accounts the funds were paid into.
The PDP wondered how the Federal Government would release the funds into bank accounts unknown to the state’s accountant general, auditor-general for local governments and the ministry of local governments.
The clash between the two parties comes after the National Union of Local Government Employees accused the Federal Government of illegally releasing the withheld six-month allocation to the APC.
Speaking on behalf of the union on Sunday, NULGE Chairman, Dr Nathaniel Ogungbangbe, said the union had confirmed that the Federal Government paid the March–August 2025 allocations into accounts illegally opened by the APC chairmen and councillors despite pending court cases.
He specifically accused the Minister of Finance, Wale Edun; the Accountant-General of the Federation, Babatunde Ogunjimi; and the Attorney-General of the Federation, Lateef Fagbemi (SAN), of abusing their offices by facilitating the release.
“Today, we have it on good authority that these three principal officers of the Federal Government have released the Osun State Local Government Councils’ allocations for the month of March 2025 to August 2025 to the illegal bank accounts opened by court-sacked APC chairmen and councillors,” Ogungbangbe said.
“We find this development very scary and alarming.
Paying Local Government allocations into privately opened and illegal bank accounts of politicians is unbelievable, bizarre and unprecedented in the history of public administration in Nigeria.”
Ogungbangbe recalled that a Federal High Court had on May 15, 2025, ordered parties to maintain the status quo, an order he said was acknowledged by the Central Bank of Nigeria, which initially withheld payment.
“The Attorney-General cannot assume the role of the Supreme Court by setting aside the judgment of the Court of Appeal, which affirmed the sacking of the APC politicians by the Federal High Court. The Attorney-General is not above the law,” he declared.
He also accused the APC of trying to destabilise the state.
“Their ultimate goal is to cause anarchy and use it to call on the President to declare a State of Emergency in the state so that they could loot our resources,” he alleged, adding that council workers would not return to duty posts until the issue was resolved.
But the Osun APC dismissed the allegations, describing them as lies designed to favour the ruling Peoples Democratic Party.
In a statement signed by its spokesperson, Kola Olabisi, the APC said: “It is not true that the said federal allocations are paid into the account of any of our local government council chairmen or any of the APC members or chieftain but into the local government councils’ accounts.”
Olabisi further argued that NULGE had no authority to interpret court rulings.
“We want to, as a party which believes in the rule of law, make it abundantly clear that it is not the duty of the NULGE to interpret any court judgment. The Court of Appeal judgement of the 10th of February, 2025, which reinstated the APC local government council chairmen and their councillors, is still in force as there is no record anywhere that it was appealed against.”
He accused the NULGE leadership of pursuing selfish interests and acting as an appendage of Governor Ademola Adeleke.
“The NULGE needs not weave up a series of lies in respect of the payment of the federal allocations… The sing-song of the NULGE before now was that some agencies of the Federal Government were withholding the accumulated federal allocations. Now that the logjam has been laid to rest, what would be their next excuse?” he asked.
The party also urged security agencies to remain on alert.
“We plead with the NULGE to shun brigandage, as Osun, being a subset of the country, is being governed by the rule of law,” the statement read.
Reacting to the revelation and the admission by the APC, Osun PDP called on the APC to disclose the accounts into which the allocations were paid and the signatories of the accounts.
In a statement on Sunday by its Chairman, Sunday Bisi, the PDP described the release of funds to the APC as a crime against the people of Osun State.
The PDP said rather than attacking NULGE, the APC should “come clean before the people of Osun State by publicly disclosing the exact bank accounts into which the local government allocations were paid and the signatories to those accounts. The APC should also disclose the amount in each of the accounts.”
The PDP said, “We demand these details because all the statutory officers of all the 30 local governments who should be aware of the payment are not aware of it. These officers manage all the accounts of the local governments. They have not seen a dime in any of their local government accounts. Also, none of the state accountant general, the auditor-general for local governments and the ministry of local governments is aware of the payments or where they were paid into.
“The Osun PDP wishes to remind the APC that hurling insults at labour unions cannot change the reality that the people of Osun are demanding answers. The questions are simple: into which accounts were the allocations paid, and who are the signatories?”
The PDP said the APC must urgently provide answers, “or we will conclude that the APC and its leaders have staged the greatest heist in the history of Nigeria by diverting over six months of allocations of all local governments in Osun State.”
“The PDP assures the people of Osun State that under Governor Ademola Adeleke, transparency and accountability will continue to be the guiding principles in the management of public funds. No amount of intimidation or blackmail by the APC will derail this resolve,” Bisi added.
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