The Osun State House of Assembly on Friday passed a new bill seeking to regulate how local government accounts across the state are opened, managed and operated in commercial banks and financial institutions.
The legislation, titled Osun State Account Administration Bill 2025, was introduced during plenary by the Speaker, Adewale Egbedun. The bill moved swiftly through legislative stages, as members adopted a motion to accelerate its passage from first to third reading on the same day.
The News Agency of Nigeria reports that during the session, Majority Leader Adewunmi Babajide cited Order 80 Rule 1 of the Assembly’s Standing Orders, explaining that while every bill is ordinarily expected to undergo three separate readings, two-thirds of the lawmakers have the power to fast-track a bill’s progression when necessary.
While presenting the policy thrust of the bill, Babajide stated that Section 7(1) of the 1999 Constitution recognises the existence and operation of local governments as a tier of government.
He noted, however, that the financial framework—particularly statutory allocations and internally generated revenue—must be safeguarded through a clear and enforceable structure.
During the committee of the whole, Speaker Egbedun highlighted the administrative changes the new legislation introduces. He emphasised that all local government accounts in Osun State must now be opened and operated strictly within the parameters outlined in the bill.
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Key provisions include:
• Each local government account must have two mandatory signatories: the Director of Finance and the Director of Administration and General Services.
• Before any bank or financial institution recognises these signatories, the Permanent Secretary of the Osun Civil Service Commission must issue a duly signed letter of introduction.
• Political office holders and government appointees are expressly barred from being signatories to any local government account already opened or to be opened.
Egbedun stressed that these measures are designed to entrench transparency, prevent political interference and ensure effective financial management at the grassroots.
The bill also establishes stringent punitive measures for non-compliance.
Any individual, organisation, commercial bank or financial institution that opens, operates or maintains a local government account in a manner that violates the provisions of the law will be deemed to have committed an offence.
Those found guilty upon conviction will face a sentence of five years imprisonment, a fine of N50 million, or both.
The Speaker further noted that if any aspect of the legislation requires additional clarification or adjustment after passage, such amendments would be handled administratively.
At the end of the plenary, Egbedun announced that a clean copy of the bill would be prepared and forwarded to Governor Ademola Adeleke for assent, bringing the new regulatory framework closer to full implementation.
NAN
