Osun Court Bars UBA From Handling Local Government Funds Amid Criminal Case

An Osogbo Magistrate Court has issued an order restraining the United Bank for Africa (UBA) from conducting any transactions with individuals claiming to be local government council chairmen in Osun State.

The ruling, delivered on Tuesday by Magistrate A. O. Adeyeba, also reaffirmed existing bench warrants for the arrest of several senior UBA officials who have failed to appear in court over charges related to the alleged illegal operation of local government accounts.

Magistrate Adeyeba directed the bank to refrain from “recognising any individual or group of individuals for the purpose of opening, maintaining, or operating bank accounts on behalf of any local government council in Osun State.” The order is to remain in effect pending the conclusion of the criminal proceedings.

The case stems from allegations that UBA officials unlawfully opened and operated accounts for the management of statutory allocations meant for the state’s 30 local government councils.

During the hearing, the defendants’ counsel, H.B. Williams, informed the court that the affected officials Group Managing Director Oliver Alawuba, Group Legal Adviser Billy Odura, and Deputy Managing Director Chukwuma Nweke—had filed an application at the High Court seeking to quash the criminal charges. He requested a stay of proceedings at the magistrate level.

However, the prosecution counsel representing the Osun State Government, Abiodun Badiora, opposed the request. He cited Section 301 of the Osun State Administration of Criminal Justice Law (2025), which prohibits the staying of criminal proceedings. Badiora also noted that an appeal had already been filed at the High Court, which had adjourned the matter indefinitely.

The court had previously issued bench warrants for the arrest of the senior bank officials on January 30, 2026, after they failed to honour summonses.

In his ruling, Magistrate Adeyeba granted the prosecution’s application to restrain UBA, emphasizing the need to “prevent further abuse of public funds.” He ordered that the criminal case against the bank and its officials must proceed, upholding the earlier bench warrants.

The case has been adjourned for further hearing.