Adeleke Seeks Federal Mediation Over Osun Fund Impasse

In a desperate bid to unlock a crippling financial bottleneck threatening local governance in Osun State, Governor Ademola Adeleke is navigating a complex diplomatic path toward a direct meeting with President Bola Tinubu. At the heart of this urgent intervention lies a bitter dispute over control of local government allocations, with allegations soaring that over 130 billion Naira has been effectively frozen amid competing political claims. This high-stakes maneuvering follows a series of dramatic judicial orders and intervention by federal authorities, aimed at untangling the messy web of accountability surrounding the funds currently held in a major financial institution.

Sources close to the negotiations indicate that while APC stakeholders within Osun State are actively maneuvering to derail the engagement, President Tinubu has officially sanctioned the meeting, signaling a willingness to seek a political rather than purely legal solution to the standoff. The urgency is fueled by the operational paralysis gripping the state’s local councils, which are unable to fund essential services due to the inability to access these crucial disbursements.

The situation escalated dramatically following reports that UBA Chairman Tony Elumelu was summoned to the Presidential Villa to address allegations of unauthorized disbursements and potential regulatory breaches regarding the Osun funds. Insiders suggest the presidency is deeply concerned that the bank may have been pressured into partial disbursements despite existing court orders, which has already led to the criminal prosecution of some banking officials.

This financial saga is underscored by a stringent ruling from a Magistrate Court in Osogbo, which has explicitly barred the institution from conducting any business with individuals claiming to be local government chairmen belonging to the APC. Magistrate Adekanmi Adeyeba’s order is a critical component of the legal gridlock, prohibiting any interaction with groups parading themselves as council heads until the criminal proceedings regarding the management of these funds are concluded.

The court’s decision was rooted in the necessity to prevent further abuse of public funds, directing the bank to cease recognizing any entity operating accounts on behalf of Osun local governments while the legal matters are pending. This judicial intervention has effectively halted the movement of money, placing immense pressure on both the state government and federal authorities to find a way forward.

In the meeting with Elumelu, President Tinubu reportedly reaffirmed a standing directive that neither of the feuding parties in Osun State should have access to the funds until the legal disputes are conclusively resolved, aiming to protect the integrity of the process. Elumelu sought clarification on the appropriate course of action, citing intense external pressure as a factor in the chaotic handling of the accounts.

The involvement of former Governor Gboyega Oyetola’s camp in the management of these funds has also reportedly been scrutinized during high-level discussions, adding a layer of intense political rivalry to the financial dispute. The presidency’s intervention aims to de-escalate this rivalry and restore order to the state’s fiscal operations.

As legal proceedings continue against bank officials for their alleged role in the irregular transactions, the focus remains squarely on the upcoming meeting between Adeleke and Tinubu. This engagement is viewed as the final attempt to resolve the impasse through political mediation before the legal process runs its full, lengthy course.

The financial crisis has significantly hampered developmental projects at the grassroots level, making the resolution of this conflict a top priority for all involved parties. The outcome of the meeting between the Governor and the President could determine the immediate future of local governance and fiscal stability in Osun State.