The Osun State House of Assembly has approved a landmark bill aimed at overhauling how financial activities are managed across the state’s 30 local government areas and area councils. The development represents a major move toward improving transparency, strengthening oversight, and enforcing accountability at the grassroots level.
The newly passed legislation establishes clear rules for the opening, operation, and management of Local Government Accounts. It is anchored on Section 7(1) of the 1999 Constitution (as amended), which empowers state assemblies to make laws regarding local government administration and finances. By laying out a structured framework, the bill seeks to curb the long-standing issues of financial mismanagement, weak controls, and political interference that have plagued local government operations for years.
A key feature of the bill is the reassignment of signatory authority. Under the new arrangement, only Directors of Finance and Directors of Administration and General Services within each local government will be permitted to sign and approve financial transactions. The law explicitly bars political office holders including chairmen, vice-chairmen, secretaries, and appointed officials from acting as signatories to local government accounts. This measure is widely seen as an attempt to safeguard public funds by limiting direct political influence over financial processes.
Following the bill’s passage, Speaker of the House, Rt. Hon. Adewale Egbedun, confirmed that a clean copy will be forwarded to the Governor for assent. Once the governor signs it into law, the legislation is expected to deepen fiscal discipline, reinforce institutional checks, and promote more responsible use of government resources. Lawmakers believe it will ultimately translate into better service delivery and improved governance across Osun State’s local councils.
The bill is anticipated to set a new benchmark for grassroots financial management, positioning Osun as a model for other states seeking to reform their local government systems.
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