By [Olusegun Ogunkayode—RovroundNews]
Osogbo
The Osun State Government has instituted a fresh legal action over the management of local government funds, filing criminal charges against United Bank for Africa Plc (UBA) and four of its senior officials over allegations of illegal opening and operation of local government accounts.
The charges, filed before a Chief Magistrate’s Court sitting in Osogbo, are scheduled for hearing on January 30, 2026.
According to court documents, the state government accused the bank and its officials of conspiring to open and operate accounts for the state’s 30 local government councils without due process, an action the government claims contravenes existing financial and administrative regulations guiding local government autonomy.
The case has attracted attention because it comes despite the previous Supreme Court ruling which held that state governments lack the locus standi to institute civil actions on behalf of local governments that are constitutionally autonomous. Legal observers note, however, that the Osun government appears to have adopted a different strategy by pursuing a criminal prosecution, rather than a civil suit, in the current matter.
Although details of the charges are yet to be fully ventilated in open court, sources familiar with the case disclosed that the counts border on conspiracy and alleged violations of financial laws relating to public funds and local government administration.
As of the time of filing this report, UBA has not issued an official response to the allegations. Efforts to reach representatives of the bank for comments were unsuccessful.
The development adds another layer to the ongoing national debate over local government autonomy, financial control, and the role of state governments in overseeing council finances, especially in the wake of recent judicial pronouncements by the apex court.
The Chief Magistrate adjourned the case to January 30, 2026, for the defendants to take their plea, as stakeholders across the state and beyond await the legal and political implications of the unfolding case.
