Reported by: Oahimire Omone Precious | Edited by: Gabriel Osa
A Magistrate Court sitting in Osogbo, Osun State, has ordered the United Bank for Africa (UBA) Plc to refrain from conducting any business transactions for or with individuals claiming to be local government council chairmen in the state while a criminal case against the bank and its officials continues in court.
The ruling, delivered on Tuesday, February 10, 2026, by Magistrate Adeyeba was issued in the context of a criminal prosecution instituted by the Osun State Government against UBA Plc and four top executives over the alleged illegal opening and operation of bank accounts for the state’s 30 local government councils.
In the ruling, the court restrained UBA from recognising or facilitating any transactions — including opening, maintaining or operating accounts — on behalf of any individual or group purporting to represent local government councils in Osun State until the criminal proceedings are finally resolved. The judge cited the need to protect public funds and prevent further alleged misuse of local government resources pending the conclusion of the case.
The dispute stems from allegations that UBA and its officials unlawfully handled local government funds by operating accounts without proper authority, contrary to state law and the directives of competent courts. A criminal charge was filed alleging multiple counts of unlawfully maintaining and operating these accounts.
On January 30, 2026, the Magistrate Court issued bench warrants for the arrest of senior UBA executives — including the Group Managing Director, Group Legal Adviser and Deputy Managing Director — after they allegedly failed to appear in court in connection with the case.
At Tuesday’s session, counsel for the defence informed the court that the officials had approached the Osun State High Court seeking to quash the criminal proceedings. However, the state government’s counsel argued that under the Administration of Criminal Justice Law of Osun State, 2025, criminal proceedings cannot be stayed simply because an appeal has been lodged, and urged the magistrate to proceed with the matter and restrain UBA from actions that may compound the allegations.
The magistrate subsequently granted the request and ordered the criminal trial to continue, adjourning the matter to February 28, 2026 for further proceedings.
This development reflects a deepening legal battle over the control and management of local government funds in Osun State — an issue that has sparked broader political and constitutional disputes within the state’s governance framework.
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