The Association of Local Governments of Nigeria (ALGON), Osun State chapter, has accused the Central Bank of Nigeria (CBN) of colluding with the All Progressives Congress (APC) to illegally operate bank accounts in the names of local governments.
Addressing a press conference in Osogbo on Thursday, state ALGON chairman, Hon. Sarafadeen Awotunde, alleged that the scheme was revealed when APC governorship aspirant and party lawyer, Mr. Kunle Adegoke (popularly known as KRAD), admitted on a live television programme that CBN had opened accounts for councils in Osun with APC members as signatories.
“On August 28, 2025, during the ARISE TV Morning Show, Mr. Adegoke openly admitted that the Central Bank of Nigeria has opened accounts in the names of local councils in Osun State, and that the signatories are not legitimate civil servants but APC members illegally recruited to claim council positions,” ALGON declared.
The chairmen described the development as “a brazen illegality” and “an attempt to divert Osun people’s money into private and political pockets,” stressing that by law, only statutory civil servants such as Heads of Local Government Administration, Directors of Administration, and Directors of Finance can sign council accounts.
ALGON also dismissed the legitimacy of APC members parading as council chairmen, citing a November 30, 2022, Federal High Court ruling in Osogbo that nullified their elections — a decision affirmed by the Court of Appeal in Akure on June 13, 2025.
They further alleged that officials of the CBN’s Osogbo branch turned away legitimate civil servants who attempted to open the accounts but allowed APC members to act as signatories. “This action disregards subsisting court judgments, violates banking rules, and endangers the welfare of Osun citizens whose funds are at stake,” the group said.
To support its claims, ALGON presented certified documents, including regulations on authorised signatories to local government accounts, the withdrawal of certificates of return from sacked APC chairmen, valid certificates of return issued to ALGON leaders in February 2025, and the two court judgments affirming their mandate.
The association demanded an immediate investigation by the CBN governor and called on Mr. Adegoke to substantiate his televised claims. ALGON also questioned why Osun was being singled out in the disbursement of local government funds.
“As we speak, all local governments in the other 35 states receive their allocations through the State-Local Government Joint Accounts as provided in the 1999 Constitution. The rule of power and politics is being placed above the rule of law. It is unfortunate,” the body said.
ALGON vowed to resist what it described as a plot against the people of Osun. “We assure the people that we will not relent in defending the mandate freely given to us and in protecting the collective patrimony of our councils. Justice must prevail,” Awotunde concluded.
