Osun LG Funds Scandal: Group Accuses Tinubu Govt, APC, UBA Of Withholding N130bn In ‘Grave Assault On Democracy’

February 3, 2026 | SUNTV Global Channel | News

A fresh controversy has erupted over local government administration in Osun State as the Movement for Credible Elections (MCE) accused the Federal Government under President Bola Ahmed Tinubu of presiding over what it described as a “criminal assault on democracy” through the alleged withholding and diversion of over ₦130 billion in local government funds.

In a strongly worded statement issued on Tuesday, the pro-democracy group said it was shocked, outraged and deeply alarmed by developments surrounding the prolonged Osun local government crisis, warning that continued inaction could push citizens toward self-help.

According to the MCE, funds released by the Federal Government for Osun State local councils were illegally hijacked and diverted, rather than deployed for grassroots governance and workers’ welfare.

The statement, signed by Comrade James Ezema, Media Coordinator of the Movement, alleged that court-sacked All Progressives Congress (APC) local government chairmen, acting in collusion with a former Osun State governor now serving as a federal minister, and officials of United Bank for Africa (UBA), unlawfully took control of local government accounts.

Speaking on behalf of the organisation, Olawale Okunniyi, head of the MCE National Secretariat, described the alleged action as a clear violation of Osun State laws governing local government finance.

“This audacious act violates Osun State law, which clearly stipulates that career local government officials must be signatories to council accounts. These lawful procedures have been deliberately ignored and trampled upon,” Okunniyi said.

The group painted a grim picture of the consequences, claiming that local government workers across Osun State have not been paid salaries for over 12 months, while individuals it described as police-backed illegal occupants of council secretariats allegedly looted public funds.

MCE further alleged that monies meant for schools, primary healthcare centres and local infrastructure were being shared among APC functionaries whose tenures had expired since October last year.

The group also accused UBA of facilitating the alleged diversion of funds, claiming the bank’s role had placed its officials “on the wrong side of the law,” and alleging that some senior executives had already been arraigned, exposing what it described as institutional complicity.

According to the Movement, the Osun State Government has been forced to borrow funds to pay council workers and keep essential services running, while security agencies allegedly provided cover for unelected individuals occupying local government offices.

Describing the situation as a serious threat to constitutional democracy, the MCE warned that allowing unelected actors to control public resources at the grassroots could irreparably damage Nigeria’s democratic foundation.

The group called on President Bola Ahmed Tinubu to intervene urgently and appealed to Nigerians and members of the international community to speak out.

“Let it be clearly stated: Osun local government funds have been hijacked, and resources meant for workers are being illegally shared by court-sacked chairmen,” Okunniyi said. “This is not mere mismanagement—it is fraud and a direct assault on democracy.”

The Movement warned that failure by the Presidency to act decisively could trigger lawful mass mobilisation by citizens determined to demand accountability and protect democratic governance.

The allegations come amid ongoing disputes over the reported ₦130 billion local government funds said to be withheld from Osun State under the current administration

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