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Osun Assembly Warns Banks, Declares Unauthorized LG Fund Withdrawals Illegal

The Osun State House of Assembly has passed a resolution mandating stricter control and accountability in the management of Local Government funds across the state.

The resolution, adopted at plenary on Monday, was anchored on the provisions of the 1999 Constitution of the Federal Republic of Nigeria (as amended), the Osun State Guidelines on Local Government Administration (2025), and the Osun State Public Financial Management Law (2020).

According to the Assembly, only duly authorised officers employed under the Local Government Service Commission are permitted to serve as signatories to Local Government accounts.

It further stressed that any attempt by unauthorised persons to access such funds is unlawful, unconstitutional, and of no legal effect.

The House also directed commercial banks and other financial institutions operating within the state to comply strictly with the resolution, while relevant government agencies are to ensure close monitoring and enforcement.

Violations, the lawmakers warned, would be considered as aiding and abetting financial fraud, attracting full legal consequences.

Speaking on the rationale behind the resolution, the Assembly noted that the move was taken in the public interest to safeguard Local Government resources, ensure accountability, and protect funds meant for grassroots development from abuse or diversion.

The House further urged members of the public to remain vigilant and report any suspected infractions to the appropriate authorities in order to strengthen transparency and probity in governance.

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