A heated war of words has erupted in Osun State over alleged mismanagement of local government funds, with the current administration accusing the immediate past government of Adegboyega Oyetola, now Minister of Marine and Blue Economy, of financial impropriety.
The Osun State Government, through its Commissioner for Information and Public Enlightenment, Kolapo Alimi, released a damning 300-page report from the Contract Review Committee, alleging that over N1.5 billion was mismanaged under Oyetola’s administration.
Alimi accused the former Commissioner for Local Government and Chieftaincy Affairs, Adebayo Adeleke, of awarding multiple contracts without due process. He also alleged that a company owned by Adeleke oversaw primary healthcare renovations, while the former chairman of the Association of Local Governments of Nigeria (ALGON), Abiodun Idowu, was involved in money laundering through a local government finance director, Akeem Ibitoye.
“This is how the former governor squandered and misappropriated the $20 million health intervention funds from the World Bank, which could have significantly improved medical services in the state,” Alimi claimed.
He further alleged that N1.5 billion was funneled into a private account linked to Ibitoye, with the approval of key officials, including former Governor Oyetola.
Oyetola’s Camp Fires Back
In response, Adebayo Adeleke dismissed the allegations as a political witch-hunt, insisting that all contracts followed due process and were approved. He even presented his resignation letter from his company to prove he had no conflict of interest when the contracts were awarded.
Adeleke also countered with corruption allegations against Alimi, accusing him of squandering over N3.7 billion when he served as Commissioner for Local Government in 2017.
He claimed that under Alimi’s watch, ALGON officials withdrew massive sums in cash, including N60 million on December 28, 2017, and N100 million in a single day on March 29.
ALGON Chairman Defends Spending
Meanwhile, ALGON chairman Abiodun Idowu defended his tenure, explaining that the association hired Ibitoye to oversee spending for proper documentation.
“When we took over, there were no records of past transactions. That’s why we engaged Ibitoye to supervise and document our projects,” Idowu stated, adding that all transactions went through the Local Government Due Process Office and were submitted to the Auditor-General.
On rumors that Ibitoye had fled, Idowu clarified that he retired in August last year and dismissed claims of his disappearance.
As both sides trade accusations, the controversy raises serious concerns about transparency in the handling of Osun’s local government funds.

