A Magistrates’ Court sitting in Osogbo, Osun State, on Tuesday restrained a first-generation bank from conducting any business transactions with individuals parading themselves as chairmen of local government councils in the state, pending the conclusion of an ongoing trial involving senior officials of the bank.
In his ruling, Magistrate Adeyeba 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 arises from a criminal case involving four senior officials of the bank over the alleged illegal operation of accounts for Osun State local government councils. The court recalled that on January 30, 2026, it issued bench warrants for the arrest of top officials of the bank.
Counsel to the defendants, H.B. Williams, informed the court that the affected officials had approached the High Court, seeking to quash the criminal proceedings at the Magistrate’s Court.
He 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 application, 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.
In the defendants’ case at the High Court, the state counsel informed the court that an appeal had already been entered with case number CA/AK/17/2026, which had been duly served. 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, as is applicable in this matter, compliance with it is held in abeyance until the appeal is finally determined.
He therefore urged the court, in the interim, to restrain the bank and its officials from further dealings with any individuals claiming to be local government chairmen in Osun State, to prevent the continued commission of alleged offences involving public funds.
In his ruling, Magistrate Adeyeba granted the application, restraining the bank from any further dealings relating to Osun State local government funds pending the final determination of the trial. He also ordered that the criminal proceedings against the bank and its officials should continue.
