Alleged LGAs Fund Diversion: Organised Labour In Osun To Indefinitely Picket All Branches Of UBA In The State
…….Declares Showdown With UBA Over Local Government Funds
The leadership of the Organised Labour in Osun State, comprising the Nigeria Labour Congress (NLC), Trade Union Congress (TUC), and Joint Public Service Negotiating Council (JPSNC), has issued a final ultimatum to United Bank for Africa (UBA), threatening indefinite picketing of the bank’s branches across the state over the management of local government accounts.
In a letter addressed to the bank’s management, the labour unions accused UBA of failing to honour an agreement reportedly reached during a mediation facilitated by the Department of State Services (DSS), which led to the suspension of an earlier planned picketing exercise.
According to the unions, UBA has continued to allow individuals described as the court-sacked APC “Yes/No” local government chairmen and councillors to operate local government accounts despite existing court judgments.
The labour leaders referenced the judgment delivered on June 15, 2026, by the Federal High Court sitting in Osogbo, presided over by Justice Adefunmilola A. Demi-Ajayi, which reportedly dismissed a suit filed by the APC-backed local government officials and declared tenure elongation unconstitutional.
Organised Labour maintained that the affected officials no longer have the legal authority to act on behalf of the 30 local government councils in Osun State or operate their financial accounts.
The unions demanded the immediate freezing of all transactions initiated by the affected officials, the restoration of banking operations to what they described as constitutionally recognized local government administrations, and the release of accrued local government funds in the bank’s custody.
Labour also urged UBA to safeguard all local government allocations, noting that the funds are intended for grassroots development and the payment of salaries, allowances, and pensions of local government workers, teachers, and health workers.
Warning of consequences, the unions stated that any continued recognition of the affected officials as account signatories would amount to a violation of a valid court judgment and could expose the bank to legal liabilities.
As part of its resolutions, Organised Labour directed that all UBA branches in Osun State be picketed indefinitely if the bank fails to comply with its demands. The unions also instructed workers, pensioners, and public sector employees to close their personal accounts with the bank and move them to other financial institutions.
Additionally, state ministries, departments, agencies, and local government councils were urged to transfer their institutional accounts and payroll operations from UBA to other commercial banks.
The labour movement said the industrial action would remain in force until the bank ceases what it described as hostile operations concerning local government funds in Osun State.
