Osun State Government Files Criminal Charges Against UBA Over Local Government Funds
The Osun State Government has officially initiated legal proceedings against United Bank for Africa (UBA) Plc and three of its senior executives, filing a total of 31 criminal charges at the Chief Magistrate Court in Osogbo. This landmark action centers on allegations that UBA engaged in the unauthorised handling of local government council funds, specifically by opening and operating accounts on behalf of local councils without lawful authority or approval from the state government.
The charges, which cover a range of offences including conspiracy, breach of trust, and violations of the Osun State Local Government Accounts Administration Law, 2025, highlight the state’s determination to ensure financial accountability and transparency within its councils. The 2025 law was introduced to regulate council finances, safeguard public funds, and enforce proper audit procedures, aiming to curb mismanagement and corruption at the local government level.
The case was first heard on January 6, 2026, when the court acknowledged the charges and scheduled the next hearing for January 30, 2026, allowing both the prosecution and the accused to prepare their submissions. Legal experts note that the complexity of the case, given the involvement of a major financial institution and senior executives, makes it one of the most significant prosecutions related to council fund mismanagement in recent times.
This legal action demonstrates the Osun State Government’s renewed commitment to strict oversight of public funds and sends a strong message to all banks and financial institutions operating in the state: adherence to the law is non-negotiable, and any attempts to bypass regulatory frameworks will be met with full legal recourse. Analysts say the outcome of this case could have far-reaching implications for banking operations in Nigeria, particularly in how commercial banks handle government and local council funds.
The state government emphasized that the action is not politically motivated but purely aimed at protecting taxpayers’ money and ensuring compliance with statutory financial regulations. Public reaction has been largely supportive, with citizens welcoming the move as a necessary step toward enhancing accountability and integrity in the management of local government resources.