LG Account: Osun Assembly Sends Strong Warning To Commercial Banks
Osun State House of Assembly has again cautioned commercial banks operating in the state against processing any unauthorised financial transactions on Local Government accounts.
This is contained in a letter signed by the Speaker, of the State House to Assembly, Prince Adewale Egbedun and made available to Newsmen in Osogbo.
Prince Egbedun described as “illegal and unconstitutional” financial instructions allegedly emanating from some local governments including Boluwaduro Local Government, authorising deductions of up to 15 percent of the September 2025 allocations in favour of private individuals.
He emphasized that such actions lack legal backing and budgetary approval, and are in clear violation of the Osun State Public Financial Management Law, 2020, and other statutory regulations.
The Speaker notes “Treasurers are not legally recognised signatories to Local Government accounts under extant laws.
Only the Local Government Chairman and the Director of Administration and General Services (DAGS) both officers of the Local Government Service Commission are legally empowered to operate these accounts.”
The Speaker emphasized that no withdrawals or deductions can be made from Local Government accounts without strict adherence to the Constitution, internal financial guidelines, and approved budgets.
“Any bank that processes such unauthorised instructions would be held complicit in financial misconduct, in contravention of several national laws, including: The Money Laundering (Prevention and Prohibition) Act, 2022, the Economic and Financial Crimes Commission (EFCC) Act, the Independent Corrupt Practices and Other Related Offences Commission (ICPC) Act,and the Criminal Code Act.” The Speaker explains further
Prince Egbedun added that severe consequences awaits any institution found culpable, including summons before the House, issuance of arrest warrants, referral to anti-corruption agencies, blacklisting of the bank
and recommendation for removal of government patronage.
