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LG funds: Oyo govt reacts as court blocks bank accounts


LG funds: Oyo govt reacts as court blocks bank accounts

The Oyo State Government has reacted to the judgement by a Federal Capital Territory High Court which blocked its accounts in some banks.

Justice A. O. Ebong ruled on an ex-parte motion for garnishee order filed by ex-local governments chairmen and councillors.

The financial institutions affected by the verdict in the suit marked FCT/HC/BW/M/238/2023 include First Bank, Wema Bank and Zenith Bank.

Court filings showed the Oyo State authorities were yet to settle the outstanding balance of N3,374, 889, 425 debt owed the former LG officials.

On Monday, however, the Oyo State Attorney General and Commissioner for Justice, Prof Oyelowo Oyewo, SAN, said the state government was not in disobedience of the court.

“Out of N4.2 billion, we have paid N1.5 billion. We were in the process of paying but the cash swap policy disrupted our plans,” he explained.

Announcing the Seyi Makinde administration’s decision to appeal the ruling, Oyewo stated that the FCT High Court does not have jurisdiction on the matter.

“The obligation the payment has is spread across the spectrum. We are amenable to instalment payment. We are still going to court to quash the order,” he said.

The commissioner said Oyo State was prepared to present its arguments, confirming judgements from the Abiola Ajimobi administration regarding LG funds are being obeyed.

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