Court Restrains UBA From Paying Out Osun LG Allocations

An Oyo State High Court on Friday, 26 September, 2025, restrained the United Bank for Africa (UBA) from paying out any money from accounts opened in the names of the 30 Local Governments in Osun State by the court-sacked All Progressives Congress (APC) Local Government Chairmen and councillors.

The Federal Government had on Friday released the seized allocations of each of the 30 local governments into the controversial new accounts, a decision the state government took to court in suit number 1/1149/25.

The case which was heard ex-parte on Friday by Justice A.L. Akintola of Court 5, had the Attorney-General of Osun State as the claimant while the UBA was the sole defendant.

The plaintiff sought the following orders: “An Order of Interim Injunction restraining the Defendant/Respondent from paying and/or causing to be paid all and/or any of that funds which constitute the statutory Local Government funds of all the 30 Local Governments in Osun State as listed under Osun State in the 1st Schedule, Part 1 of the 1999 Constitution of the Federal Republic of Nigeria pending the hearing and determination of the Motion on Notice for an order of interlocutory injunction filed in this case.

“An Order of Interim Injunction of this Honourable Court mandating the Defendant/Respondent not to release all the said funds mentioned in relief one above and/or any part of it to any person however he may be, be it artificial or natural pending the hearing and determination of the Motion on Notice for an order of interlocutory injunction filed in this case.

“And for such further order or other orders as this. Honourable court may deem fit to make in the circumstance.”

Ruling on the ex-parte motion deposed to by Olufemi Akande Ogundun and argued by A.A. Abass Esq, counsel for the applicants, Justice Akintola,

held “this court is satisfied that the claimants/applicants have successfully made out a case for the urgent intervention of this court at this stage as any delay may foist on the claimants/applicants an irreversible harm, injury or situation of helplessness.

“In any event, it is only an interim order that the defendant/respondent will have the opportunity to possibly challenge once the defendant turns up to join issues with the claimants on the motion on notice for an order of interlocutory injunction already filed in this case.

“Accordingly, the interim orders of injunction sought are hereby granted as prayed, on the claimants/applicants.”

The court then fixed October 3 for hearing on the motion on notice for the order of interlocutory injunction already filed in the case.

In a covering letter conveying the court ruling dated 26 September, 2025, the lead counsel to the Osun State government, Mr Musibau Adetunbi, SAN, informed the bank of its duty to obey the court order.

The letter was addressed to the head office of the bank in Lagos as well as its branch in Osogbo, the state capital.

“Kindly be informed that all relevant processes have been duly served on your bank and your Legal Department has equally been notified of the Order. However, out of abundance of caution, we believe that you are one of the authorities of the Bank that we should notify.

“The essence of this letter is just to remind you of your duty to comply with the above-stated order, so long as it subsists, and which obviously was made pending the hearing of Motion on Notice.

“Kindly note that the above order covers any statutory payment made to your bank for the benefit of the 30 Local Governments in Osun State,” the letter read.