Osun Assembly Approves Local-Government Accounts Bill To Regulate of LG Funds
The Osun State House of Assembly has enacted a new law — the Osun State Local Government Accounts Administration Bill, 2025 — to regulate the management, operation, and oversight of bank accounts belonging to the state’s 30 local government areas. The legislation, passed on Friday, aims to institutionalize accountability and guard against financial malfeasance at the grassroots level.
Under the Bill, only the Directors of Finance and the Directors of Administration & General Services in each council are authorized signatories for LG accounts — political officeholders and their appointees are expressly barred from such roles.
This measure is widely viewed as a corrective step towards removing undue political interference in local government finances.
As outlined by the Assembly, the Bill derives its legal mandate from Section 7(1) of the 1999 Constitution (as amended), which empowers state legislatures to legislate on local government finances.
A statement by the Assembly’s Chief Press Secretary emphasized that the move is intended to foster fiscal discipline, ensure compliance with statutory procedures, and improve service delivery across all local councils.
Speaking after the passage, the Speaker of the House, Adewale Egbedun, announced that a clean copy of the Bill will be forwarded to the state’s Governor, Ademola Adeleke, for assent. Once signed into law, the legislation is expected to enhance institutional integrity, prevent fund diversion, and ensure that grassroots administrations operate with transparency and financial prudence.
With this framework, the Assembly signals a new era of financial oversight for local governments in Osun — and a renewed commitment to protecting public resources meant for community development and service delivery.
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