The Osun West senatorial seat became vacant after the sudden death of the occupier, Isiaka Adeleke, in April.
The five-member panel, led by the Speaker of the Zamfara State House of Assembly, Sanusi Rikiji, downed Mr. Hussein’s aspiration for the APC senatorial ticket for failing to submit his resignation letter as commissioner within 30 days before the election to be contested.
The disqualification letter was made available to the Chairman of the Osun State APC, Gboyega Famoodun and Mr. Hussein on Sunday.
The panel, however, noted that Mr. Hussein could appeal the decision before another panel set up by the party to handle such matters.
The aspirant rejected the disqualification, arguing that he had resigned his appointment as commissioner since the 6th of June, adding that he had fulfilled all the requirements of the law.
The bye-election holds on July 8 as scheduled by the Independent National Election Commission, INEC.
Meanwhile, the panel cleared Ademola Adeleke, a brother to the late senator, to contest the June 12 primaries of the party.
Other aspirants had earlier stepped down, and if the disqualification of Mr. Hussein is upheld by the appeal panel, Mr. Adeleke would go into the primaries unopposed.