A Magistrate Court sitting in Osogbo, Osun State, has barred the United Bank for Africa (UBA) from releasing or handling local government funds on behalf of individuals identified as members of the All Progressives Congress (APC) who claim to be council chairmen.
It also reaffirmed an earlier bench warrant issued for the arrest of three senior officials of the bank.
Magistrate Adeyeba, in his ruling on Tuesday, restrained the bank from conducting any transactions with persons “parading themselves as chairmen of local government councils in the state” pending the conclusion of the criminal proceedings involving the bank’s top officials.
It held that:“In the interest of the public and to prevent further abuse of public funds,” UBA must not recognise any individual or group for the purpose of opening, maintaining, or operating accounts on behalf of any local government council in Osun State.”
The order was sequel to a criminal case filed against four senior officials of the bank over the alleged unlawful operation of accounts linked to local government councils in the state.
The court recalled that on January 30, 2026, it issued bench warrants for the arrest of UBA’s Group Managing Director, Oliver Alawuba, the Group Legal Adviser, Billy Odura, and the Deputy Managing Director, Chukwuma Nweke, over their alleged failure to honour court summons.
At the proceedings on Tuesday, counsel to the defendants, H. B. Williams, told the court that the affected officials had approached the High Court to quash the criminal proceedings before the Magistrate Court.
He argued that the lower court should suspend proceedings until the High Court determines the application.
Counsel to the Osun State Government, Abiodun Badiora, opposed the request, stating that under “Section 301 of the Osun State Administration of Criminal Justice Law, 2025, the staying of criminal proceedings has been expressly prohibited.”
He also told the court that an appeal had already been filed at the High Court with case number “CA/AK/17/2026,” adding that all parties had been served and that the matter had been adjourned indefinitely.
He argued that once an order in a civil matter is appealed, compliance with such an order is suspended until the appeal is resolved.
The state counsel therefore urged the court to restrain UBA and its officials from any further dealings with individuals claiming to be local government chairmen in Osun State to prevent the continued alleged misuse of public funds.
In his ruling, Magistrate Adeyeba granted the application and ordered that UBA must refrain from further dealings concerning local government funds in Osun State pending the determination of the criminal trial.
He also directed that the criminal proceedings against the bank and its officials should continue, thereby reaffirming the earlier bench warrant.
The Osogbo Chief Magistrate Court had earlier issued a bench warrant against UBA Plc and three of its senior executives over alleged involvement in the opening and operation of unauthorised accounts for local government funds in Osun State.
The warrant was issued on January 30, 2026, after the bank failed to appear before the court in a case instituted by the Osun State Government through the Office of the Attorney General, and the matter was adjourned to February 10, 2026.