The Oyo State High Court, sitting in Ibadan, has extended an interim injunction restraining the United Bank for Africa (UBA) from allowing withdrawals from 30 bank accounts holding withheld allocations for Osun State local governments lodged by the Central Bank of Nigeria (CBN).
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Presiding Justice Ladiran Akintola renewed the order on Friday to ensure that all parties in Suit No. 1/1149/2025 the Attorney-General of Osun State, the Osun State Local Government Service Commission, and UBA Plc are granted a fair hearing.
While UBA’s counsel was absent, senior lawyer Kazeem Gbadamosi (SAN), representing the dismissed APC council chairmen, appeared in court after filing an application for joinder. Counsel to the plaintiffs, Musibau Adetunmbi (SAN), opposed the application, noting that he had only just received two fresh filings from the ex-chairmen’s legal team: one seeking joinder and another challenging the court’s territorial jurisdiction. He argued that the former APC chairmen lacked locus standi until their joinder was formally granted.
“Their application has not been decided upon; they remain outsiders to this case,” Adetunmbi said, stressing the need to extend the interim order to allow adequate time to study the documents and respond.
However, Gbadamosi rejected the claim that his clients were “strangers” to the matter, asserting that they were directly affected by the interim injunction of September 26, 2025, and had a right to be heard. In his October 2, 2025 application, Gbadamosi also challenged the jurisdiction of the Oyo State High Court, citing case law that a court cannot extend an order once its jurisdiction is disputed.
Further evidence was presented via a supplementary affidavit by Mrs. Rachael Abidemi Aluko, Head of Local Government Administration in Boluwaduro Local Government. She alleged attempts to misappropriate local government funds despite the court’s subsisting order.
Aluko referred to an undated letter sent to UBA by Mr. Adebayo Oyekanmi and Mr. Lasisi Gbadebo Oyebode, who styled themselves as Chairman and Treasurer of Boluwaduro Local Government, instructing the bank to deduct 15 per cent of statutory allocations and remit it to a private law firm. She dismissed the letter as illegitimate, explaining that neither individual was authorised to issue such directives, with the role of Treasurer not recognised under Osun’s local government framework.
She further identified the legitimate officers Director of Finance and Director of Administration & General Services holding authorisation over local government accounts under the 2025 Guidelines for Local Government Administration, submitting exhibits to confirm their legitimacy.
The plaintiffs reiterated that the substantive question of authentic local government chairmen is already before the Supreme Court in Suit No. SC/CV/773/2025. They warned that premature disbursement of funds would frustrate the course of justice.
After proceedings, Adetunmbi briefed journalists, revealing that a related case concerning the disputed allocations is scheduled for hearing at the Supreme Court on Tuesday, October 7. He explained that “the essence of today’s ruling is to secure the funds until the Supreme Court delivers its verdict next Tuesday.”
He added, “Those who effected payments knew the case was pending at the Supreme Court; they should have respected the apex court by holding back. Let the Supreme Court deliver its decision, and everyone will abide by it. But to disburse in the meantime is unacceptable.”
Adetunmbi also highlighted concerns over a letter instructing that 15 per cent of withheld allocations from March to September, amounting to billions of naira, be paid as legal fees to a private individual. “By what authority? By what process? Without the preservation order, the remainder of the funds would already have disappeared,” he said.
On the issue of joinder, Adetunmbi concluded, “We shall oppose it. These individuals have no business in this matter.”
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