CBN, Accountant-General Deny Diverting Osun LG Funds to Sacked APC Officials

Cynthia Ezegwu

The Central Bank of Nigeria (CBN) and the Office of the Accountant General of the Federation (AGoF) have denied allegations that allocations meant for Osun State local governments were secretly paid into accounts belonging to sacked All Progressives Congress (APC) chairmen and councillors.

The denial was made on Monday at the Federal High Court, Abuja, where the Osun State Government is challenging the alleged diversion of funds.

Counsel to the state government, Musibau Adetunbi (SAN), told the court that despite an order directing parties to maintain the status quo, the funds in dispute were released between Thursday and Friday to the APC members through accounts reportedly opened at the United Bank for Africa (UBA).

He said the Osun government, upon learning of the development, approached an Oyo State High Court—since the state judiciary was on strike—and secured a restraining order to stop further disbursement of the funds.

READ ALSO: Court Stops UBA from Releasing Osun LG Disputed Funds

However, counsel to the CBN, Murtala Abdulrasheed (SAN), and AGoF’s lawyer, Tajudeen Oladoja (SAN), dismissed the allegations as rumours, challenging the plaintiff to provide evidence. They also opposed a motion to transfer the case to Osogbo, urging the court instead to fast-track the hearing, noting that the tenure of the embattled officials would expire on October 22.

After hearing arguments, Justice Emeka Nwite adjourned the matter until October 16 for a ruling on the plaintiff’s motion challenging the territorial jurisdiction of the Abuja court to hear the case.

In the substantive suit, the Osun State Government is seeking interim orders restraining the CBN and AGoF from opening, operating, or funding accounts in favour of the sacked APC officials, in compliance with an earlier Federal High Court judgment.

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