Osun Govt Exposes Alleged Plot To Divert LG Funds Into Private Accounts — Calls Out CBN And Accountant-General
The Osun State Government has raised serious allegations against two of Nigeria’s top financial institutions — the Central Bank of Nigeria (CBN) and the office of the Accountant-General of the Federation — accusing them of conspiring to illegally divert Local Government (LG) funds into private accounts.
This bombshell was dropped on Wednesday, June 18, 2025, by Dosu Babatunde, the Commissioner for Local Government and Chieftaincy Affairs in Osun State. According to him, the state has uncovered an alarming plot to bypass due process and funnel constitutionally earmarked funds for LGs into accounts linked to private individuals — particularly loyalists of the former governor.
A Brewing Financial Scandal?
The accusation strikes at the very core of public finance accountability in Nigeria. Babatunde asserts that federal officials have allegedly ignored lawful procedures and are now trying to override Supreme Court proceedings currently underway. “This plan is a direct violation of public finance law,” he warned, calling for immediate intervention by President Bola Tinubu.
Despite Osun State’s official correspondence — including a letter introducing proper LG accounting officers like Heads of Local Government Administrations (HLAs) and Directors of Finance — the CBN Osogbo branch allegedly rejected this list. Instead, Babatunde claims, funds are being redirected toward individuals aligned with ex-Governor Gboyega Oyetola, without the consent of the current administration.
Rule of Law vs. Political Powerplay?
This situation is more than a technical financial dispute — it’s a clash of political legacies and federal-state dynamics. The statement makes clear that the current Osun administration views the move not only as unconstitutional but also as a calculated power grab by federal insiders and remnants of the previous government.
Babatunde emphasized that any money disbursed into personal bank accounts — bypassing the officially designated LG officers — will not be recognized as valid LG funds. The government warns of dire legal consequences for all parties involved.
A Call for Presidential Intervention
Calling it a “constitutional shenanigan,” the Osun government has turned directly to President Tinubu, urging him to intervene and halt what they describe as a corrupt scheme that risks undermining trust in Nigeria’s financial institutions.
“If this unlawful act continues, Osun will not hesitate to take every lawful action necessary to correct the anomaly,” the commissioner stated.
Final Thoughts
This developing story paints a troubling picture of governance and financial transparency in Nigeria. As the Supreme Court gears up to hear the related cases, all eyes will be on the federal government’s response — and whether this alleged scheme was a rogue maneuver or part of a broader systemic issue.
If substantiated, these claims could trigger investigations, shake public trust, and potentially expose deep-rooted corruption within Nigeria’s financial distribution systems. For now, the Osun State Government has fired the first warning shot — and it’s loud enough for the whole nation to hear
