The ongoing political power struggle for control of local government administration in Osun State has reached a critical boiling point. The latest development sees the Association of Local Governments of Nigeria (ALGON), Osun State chapter, directly pointing fingers at the Central Bank of Nigeria (CBN). ALGON alleges that the nation’s apex bank is colluding with the opposition All Progressives Congress (APC) to operate what they call “illegally opened bank accounts” for local government councils across the state.
This explosive accusation, made during a recent press conference in Osogbo, has not only intensified the bitter rivalry between the ruling Peoples Democratic Party (PDP) and the opposition APC but has also raised profound questions about the integrity of key national institutions. This is a story that goes beyond a simple political spat—it delves into the very core of financial regulations, the sanctity of court judgments, and the credibility of the Central Bank of Nigeria itself.
The Revelation: A Bombshell on Live TV
He explained that a dramatic confession by a high-profile APC chieftain during a live broadcast was the starting point.
“On the 28th of August, 2025, during a live broadcast of the ARISE TV Morning Show, Mr. Kunle Adegoke, an APC governorship aspirant and counsel to the party, openly admitted that the Central Bank of Nigeria has opened accounts in the names of local government councils in Osun State, and that the signatories to those accounts are not the legitimate civil servants but members of the APC recruited to claim local government civil service positions and offices.”
Awotunde did not mince words, describing the revelation as a “brazen illegality” and a deliberate “attempt to divert Osun people’s money into private and political pockets.” He warned that such actions pose a direct and serious threat to the welfare of Osun residents, whose collective patrimony is at stake.
To back their claims, ALGON’s chairman meticulously quoted from existing Nigerian laws and financial regulations.
“Throughout the democratic world, politicians do not sign government cheques,” he emphasized. “The law is clear and unambiguous.
The crux of ALGON’s argument rests on the legal illegitimacy of the sacked APC chairmen. Awotunde cited two major judicial pronouncements that had invalidated their elections, making their alleged involvement with government funds even more audacious.
He recalled that:
- Federal High Court Judgment: On November 30, 2022, the Federal High Court in Osogbo delivered a judgment that nullified the election that brought in the APC local government chairmen.
- Court of Appeal Affirmation: The Court of Appeal in Akure upheld and affirmed this judgment on June 13, 2025, leaving no ambiguity about their legal standing.
“In law, they remain sacked. Their so-called election has been nullified beyond dispute,” Awotunde asserted, driving home the point that the APC’s claims to legitimacy at the council level are legally invalid.
To strengthen their case and provide irrefutable evidence, the ALGON officials presented a set of certified documents during the press conference. These materials were intended to prove their legitimate leadership and the alleged complicity of the CBN.
The documents included:
- Regulatory Guidelines: Official documents clearly stipulating that statutory civil servants are the rightful signatories to local government accounts.
- OSIEC Withdrawal Letters: Letters from the Osun State Independent Electoral Commission (OSIEC) formally nullifying the certificates of return previously given to the sacked APC chairmen.
- Fresh Certificates of Return: Valid certificates of return issued in February 2025 to ALGON chairmen aligned with the PDP, recognizing them as the lawful heads of the councils.
- Certified Court Judgments: Certified copies of the court judgments from both the Federal High Court and the Court of Appeal that confirmed the nullification of the APC chairmen’s tenure.
ALGON insists that these documents leave no doubt that the law recognizes their leadership alone and that the CBN’s alleged actions show profound disrespect for the nation’s judicial authority.
Another critical point raised by ALGON was the seemingly unique treatment of Osun State in the matter of local government funds.
“As we speak, all local governments across the other 35 states of the federation continue to receive their statutory allocations through the State-Local Government Joint Accounts, as prescribed in the 1999 Constitution,” Awotunde stated. “Why is Osun an exception?”
They went on to accuse the Accountant General of the Federation (AGF) and other unnamed federal allies of actively subverting the Nigerian Constitution by prioritizing political interests over the rule of law.
“It is most unfortunate that in this country, politics is being elevated above legality. This is not just an attack on ALGON; it is an attack on the people of Osun State and their right to good governance,” Awotunde concluded.
Despite the formidable challenges, the ALGON chairmen vowed to remain resolute in their fight. “We assure the good people of Osun that ALGON will not relent in defending the mandate freely given to us. We are determined to protect the collective patrimony of our local governments. Justice must prevail,” Awotunde declared.
The association also issued a direct and urgent call to the national leadership of the CBN, demanding a swift investigation. Specifically, they urged the bank to:
- Probe Its Local Branch: Immediately investigate the conduct of its Osogbo branch officials to determine the extent of their alleged complicity.
- Compel Substantiation: Call on Kunle Adegoke to substantiate the explosive claims he made on national television.
- Reassure the Public: Reassure the Nigerian public that the apex bank is not a willing participant in undermining the laws of the land.
After these grave allegations surfaced, journalists tried to get an official response from the Central Bank of Nigeria but got no reply. They called Mrs. Hakama Sidi-Ali, the Acting Director of Corporate Communications, but the calls didn’t connect, and she did not respond to WhatsApp messages. This silence from the apex bank has only fueled public speculation and heightened concerns that the matter may be more complex than a simple misunderstanding.
In a sharp and immediate rebuttal, the Osun State APC dismissed the allegations as “baseless.” Speaking through its spokesperson, Kola Olabisi, the APC insisted that the PDP-backed local government chairmen were nothing more than “impostors” with no legal standing.
Olabisi argued that the Court of Appeal in Akure had, on February 10, 2025, reinstated the APC local government chairmen and councillors, making them the legally recognized executives at the council level. “As a matter of fact, it is not in our habit to respond to unsigned statements that are worth less than a sheet of ordinary paper. But because lies, if repeated often enough, may be mistaken for the truth, we are compelled to respond,” he said.
He further insisted that the Court of Appeal judgment of February 10 was “explicit enough” for even non-lawyers to comprehend, affirming that the APC chairmen were the lawful leaders of local governments in Osun. Olabisi stated that Abiodun Idowu is the only officially recognized ALGON chairman in Osun and that the national headquarters of ALGON in Abuja acknowledges him. “Those who crafted that so-called press statement knew they were impostors. That was why they were afraid to sign their names. The public should ignore them completely,” he concluded.
This escalating controversy in Osun is far from a mere state-level dispute. It serves as a powerful microcosm of deeper, systemic issues plaguing Nigeria’s governance system. The central conflict highlights several critical concerns:
- Judicial Authority vs. Political Influence: The conflicting claims regarding which court judgments are binding illustrate how political actors selectively use legal pronouncements to support their narratives, undermining the authority of the judiciary.
- Financial Integrity of the CBN: Allegations that the CBN is opening accounts with unauthorized political signatories raise serious questions about accountability, transparency, and the political independence of the nation’s apex bank.
- Rule of Law vs. Rule of Politics: The dispute is a stark reminder of a broader national challenge where political convenience and partisan interests are often elevated above legal and constitutional provisions.
- Impact on Citizens: At the heart of this entire saga is the welfare of ordinary Osun residents. If local government funds are being mismanaged or diverted into political pockets, the provision of essential services, infrastructure development, and social amenities will be gravely affected.
The unfolding drama involving the Association of Local Governments of Nigeria (ALGON), the All Progressives Congress (APC), and the Central Bank of Nigeria (CBN) has morphed into something far more significant than a partisan quarrel. At its core, this dispute represents a crucial test for Nigeria’s democratic journey—a test of its adherence to the rule of law, transparency, and the principles of good governance. They cut into the very fabric of national integrity.
For the people of Osun, the situation has created an atmosphere of uncertainty and deep concern. Local government councils, designed to serve as the closest tier of government to the people, now face the threat of turning into battlefields for political dominance. As ALGON and the APC trade accusations and counter-accusations, residents actively question whether leaders manage their monthly allocations and development funds responsibly or divert them into political pockets. The continued silence of the CBN further complicates matters, raising legitimate fears about accountability at the nation’s apex financial institution.
The big question is whether the government will launch an independent probe to uncover the truth and hold those responsible accountable. Nigerians are watching closely, eager to see if justice will prevail and if institutions will act impartially to defend the law. The outcome of this controversy will likely shape public trust in both political actors and financial regulators for years to come. What is beyond doubt is that this crisis has once again put Osun State at the center of a national debate on governance, accountability, and the sanctity of public institutions. The lessons drawn from this episode will either reinforce Nigeria’s democratic resilience or further expose its institutional weaknesses.