The Economic and Financial Crimes Commission (EFCC) has explained the reasons behind its decision to freeze the bank accounts of the Osun State Government, saying the action was taken to prevent the alleged diversion of public funds amid an ongoing investigation into the state’s finances.
In a statement issued on Wednesday by the Commission’s Head of Media and Publicity, Dele Oyewale, the anti-graft agency disclosed that it has been investigating the Osun State Government since March 2026 over the alleged fraudulent management of Ecology Funds, Intervention Funds and allocations from the Federal Account Allocation Committee (FAAC).
According to the EFCC, the investigation centres on an alleged ₦11 billion fraud, adding that several state officials, including the Accountant General of Osun State, have already been questioned by investigators.
The Commission said the accounts were not initially frozen despite the ongoing probe, but claimed it was forced to intervene after detecting what it described as suspicious movements of funds beginning on August 2, 2026.
“The ongoing investigations of the state government would not have warranted any placement of a Post No Debit order on its account but for the precipitate and unwarranted movement of funds from the accounts to different suspicious accounts since August 2, 2026,” the statement read.
The EFCC further alleged that it observed “huge transfers of funds into different corporate entities” and decided to place restrictions on the affected accounts to stop further transactions while investigations continue.
Explaining its decision, the anti-corruption agency maintained that the move was in line with its statutory responsibility to protect public resources and prevent the misuse of government funds.
“The Commission cannot watch idly while a state government’s account is being pillaged,” the EFCC stated.
While acknowledging that Osun State is preparing for its forthcoming governorship election, the Commission insisted that the electoral process could not be used as a reason to suspend its constitutional duties.
“While the Commission is fully aware of the impending governorship election in Osun State, it has a responsibility to act in defence of the sanctity of the funds of the state. It will be uncharitable for the Commission to allow an excuse of an upcoming election to fold its arms to perform its legally assigned functions,” the statement added.
The EFCC also revealed that Osun is not the only state under its watch, noting that the financial activities of several other state governments are being monitored as part of efforts to promote accountability and transparency in public finance.
“It is equally needful to state that the Commission is keeping watch over the finances of other states like Osun State. Many of these states are on the investigative radar of the Commission to ensure accountability and probity,” the agency said.
Reaffirming its neutrality, the Commission dismissed allegations of political bias, stressing that its operations are guided solely by the law and the public interest.
“The Commission has always pointed out that it is non-partisan and non-sectarian but always working in the overall interests of Nigerians. The Osun State government account was frozen to save public funds from being looted,” the statement concluded.
The EFCC urged Nigerians to disregard what it described as false narratives surrounding the development, assuring that it remains committed to protecting public funds and upholding accountability across all levels of government.
