Osun Assembly Passes Local Government Accounts Administration Bill, Stripping Politicians of Signatory Power and Imposing N50m Fine for Violation

In a major step toward curbing financial mismanagement and strengthening accountability at the grassroots level, the Osun State House of Assembly today, Friday, December 5, 2025, passed the Osun State Local Government Accounts Administration Bill, 2025. The legislation, passed after being fast-tracked through the third reading, is designed to regulate the opening, management, and operation of local government accounts in line with the constitutional mandate for state assemblies to legislate on local government finances. The Speaker, Mr. Adewale Egbedun, emphasized that the bill seeks to enhance accountability, prevent financial misuse, and ensure strict compliance with statutory fiscal procedures across all 30 local government areas.

Crucially, the new framework targets the elimination of undue political interference in local government finances. The bill expressly prohibits political office holders and their appointees from serving as signatories to any local government accounts. Moving forward, the Directors of Finance and the Directors of Administration and General Services who are career civil servants will be the sole authorized signatories.

The bill includes severe penalties for non-compliance. Any individual, commercial bank, or organization found guilty of opening or operating a local government account contrary to the provisions of the bill shall be liable on conviction to five years imprisonment or a fine of N50 million. The Speaker confirmed that a clean copy of the legislation would be transmitted to Governor Ademola Adeleke for assent, noting that once signed, the law would promote greater financial prudence and institutional integrity, ultimately improving service delivery to citizens at the grassroots.