A Magistrate Court sitting in Osogbo, Osun State, on Tuesday, barred the United Bank for Africa (UBA) from releasing or dealing with local government funds on behalf of individuals identified as members of the All Progressives Congress (APC) who refer to themselves as chairmen of local government councils in the state.
The court also reaffirmed the subsisting bench warrant earlier issued for the arrest of senior officials of the bank, insisting that the ongoing proceedings against them must continue.
Delivering his ruling on Tuesday , Magistrate Adeyeba restrained UBA from “conducting any business transactions with individuals parading themselves as chairmen of local government councils in the state,” pending the conclusion of the criminal proceedings involving the bank’s top officials.
He held that “in the interest of the public and to prevent further abuse of public funds,” the bank must 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 followed a criminal case instituted against four senior UBA officials over the alleged illegal operation of accounts for Osun State local government councils.
The court recalled that on January 30, 2026, it had issued bench warrants for the arrest of the Group Managing Director of UBA, Oliver Alawuba; the Group Legal Adviser, Billy Odura; and the Deputy Managing Director, Chukwuma Nweke, for allegedly failing to honour court summons.
At Tuesday’s sitting, counsel to the defendants, H.B. Williams, told the court that the affected officials had approached the High Court, seeking to quash the criminal proceedings at the Magistrate Court.
Williams argued that the lower court should stay proceedings pending the hearing and determination of the application.
However, counsel to the Osun State Government, Abiodun Badiora, opposed the request, informing the court that under “Section 301 of the Osun State Administration of Criminal Justice Law, 2025, the staying of criminal proceedings has been expressly prohibited.”
On the defendants’ move at the High Court, Badiora informed the Magistrate Court that an appeal had already been entered with case number “CA/AK/17/2026,” which, he said, had been duly served on all parties. He added that the Osun State High Court had “consequently adjourned the matter indefinitely.”
Badiora further submitted that once an order is appealed against in a civil case, “compliance with it is held in abeyance until the appeal is finally determined.”
He therefore urged the court to restrain UBA and its officials, in the interim, from further dealings with “any individuals claiming to be local government chairmen in Osun State,” in order to prevent the continued commission of alleged offences involving public funds.
In his ruling, Magistrate Adeyeba granted the application, restraining UBA from any further dealings relating to Osun State local government funds pending the final determination of the criminal trial.
He also ordered that the criminal proceedings against the bank and its officials should continue, thereby reaffirming the earlier bench warrant issued against the affected UBA officials.
Earlier, SaharaReporters reported that the Osogbo Chief Magistrate Court issued a bench warrant against United Bank for Africa (UBA) Plc and three of its senior executives over alleged involvement in the opening and operation of unauthorized accounts for local government funds in Osun State.
The bench warrant was issued on Friday, January 30, 2026, following the bank’s failure to appear before the court in a case instituted by the Osun State Government through the Office of the Attorney General. The court also adjourned further hearing in the matter to February 10, 2026.
The charges, filed under charge number MOS/601C/2025, followed complaints by chairmen of local governments in the state who alleged that unauthorized accounts were opened for the receipt and management of statutory allocations meant for the 30 local government councils in Osun State.
