A Federal High Court sitting in Osogbo has issued a restraining order against the Accountant-General of the Federation, the Central Bank of Nigeria (CBN), and the Attorney General of the Federation and Minister of Finance.
The court order prevented them from opening local government accounts for a group of sacked council chairmen.
The court further directed that the status quo be maintained, meaning no financial transactions or account openings should be carried out in favour of the sacked chairmen, whose removal remains legally binding and unchallenged by any reinstating order.
According to the court, any move to release local government funds to the former officials would be illegal, as no valid court ruling has overturned their removal from office.
According to reports, the sacked chairmen had approached the CBN seeking to open local government accounts in their names, despite acknowledging their removal and pursuing an appeal against the subsisting judgment.
In response, the CBN declined the request, insisting on a valid court order reinstating them—a condition the ex-chairmen failed to meet.
Their attempts raised concern within the state government, which subsequently sought judicial intervention to restrain federal agencies from enabling what it described as an unlawful takeover of council finances.
Meanwhile, the state has already conducted elections and installed new council officials. However, these elected chairmen have refrained from occupying council secretariats to avoid violent confrontations with the sacked officials.
The newly elected council chairmen have opted to pursue legal action to remove the former officials from the secretariats.
The court’s latest order strengthens the position of the state government and the newly elected council executives, making it clear that no financial transactions or official recognition should be extended to the sacked chairmen unless a valid court reinstatement is secured.
