Osun Govt Account Frozen Over Alleged N11bn Fraud – EFCC

By Ademu Idakwo, Paul Uwadima, Ejike Ejike, Joshua Dada

The Economic and Financial Crimes Commission (EFCC) has explained the reasons behind its decision to freeze the Osun State Government’s bank account, saying the action was taken to prevent the alleged diversion of public funds and was not connected to the forthcoming governorship election in the State.

In a statement yesterday by its 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 Federation Account Allocation Committee (FAAC) amounting to about N11 billion.

According to the Commission, several state officials, including the Accountant General of Osun State, have been questioned as part of the ongoing investigation.

The EFCC stated that it initially had no intention of placing a Post No Debit (PND) order on the State’s accounts until it detected what it described as “precipitate and unwarranted” movement of funds beginning on 2 August 2026.

It is alleged that investigators observed large transfers from government accounts to several corporate entities, which they considered suspicious, prompting the Commission to freeze the affected accounts to halt further transactions.

Part of the statement read “The Commission noticed huge transfers of funds into different corporate entities and had to swiftly halt the trend by freezing the accounts from which such heavy funds are being moved.”

The anti-corruption agency maintained that the decision was taken strictly in line with its statutory responsibility to safeguard public resources and should not be interpreted as an attempt to influence the upcoming governorship election in Osun State.

“The Commission cannot watch idly while a state government’s account is being pillaged. 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 stated.

The EFCC also revealed that it is monitoring the finances of several other states as part of broader efforts to ensure accountability and transparency in the management of public funds.

Reaffirming its commitment to impartiality, the Commission insisted that it remains non-partisan and acts solely in the interest of Nigerians, noting that “The Osun State Government account was frozen to save public funds from being looted.”

However, the EFCC’s action attracted diverse reactions from political parties, against the backdrop of political tension ahead of the State’s governorship election scheduled for next weekend, 15 August.

Adeleke’s allegation

Earlier yesterday, Governor Adeleke alleged that the anti-graft agency had frozen the State Government Account.

Addressing journalists at the government House in Osogbo, the governor said the government received a letter from First Bank, in which the EFCC requested that the bank freeze the state government account.

The governor said the action was taken without any court order, adding that this can’t  happen in a democracy, where the Rule of Law must always prevail.

His words: “This morning, we received a letter from our banker, forwarding a letter from the EFCC, instructing the bank to freeze the Osun State Government Account”.

The Osun State Attorney-General and Commissioner for Justice, Mr Oluwole Jimi-Bada, SAN, has said the Economic and Financial Crimes Commission (EFCC) lacks the legal authority to freeze the State’s statutory account.

Jimi-Bada asserted on Wednesday while addressing journalists in Osogbo, following the reported freezing of the state government’s statutory account domiciled with First Bank by the anti-graft agency.

The Attorney-General said the state government recognises the mandate of the EFCC and other lawful government institutions, but argued that the provisions of the laws cited by the Commission do not empower it to restrict access to a state’s statutory account.

Parties react

The Accord Party condemned the reported freezing of the State’s bank accounts, describing the action as unconstitutional, politically motivated and a threat to Nigeria’s democracy ahead of the 15 August governorship election.

In a statement issued yesterday by its National Chairman, Chief Maxwell Mgbudem, the party alleged that the action was part of a broader attempt to deploy federal institutions to influence the outcome of the forthcoming election in favour of the All Progressives Congress (APC).

Accord argued that the decision to freeze the State’s accounts just days before the election was intended to disrupt government activities and undermine the administration of Governor Ademola Adeleke.

According to the party, the EFCC acted without obtaining a court order, claiming the anti-graft agency was aware that the courts would not have granted such approval. It said the matter would be challenged legally.

“This injustice, illegality, impunity and recklessness shall not stand,” the statement read, adding that the party remained confident that the rule of law would prevail,” he said.

The African Democratic Congress (ADC) on Wednesday accused President Bola Tinubu of using federal institutions to undermine the Osun State Government ahead of the forthcoming governorship election, describing the freezing of statutory allocations to the State’s local governments as “political terrorism.”

The opposition party said the withholding of the funds was an assault on democracy and part of what it described as a broader strategy to intimidate the Osun State Government and influence the outcome of the governorship poll.

In a statement signed by its National Publicity Secretary, Mallam Bolaji Abdullahi, the ADC warned that President Tinubu’s alleged “win-at-all-cost” approach to politics posed a serious threat to democracy and national stability.

According to the party, the freezing of the allocations would directly affect the payment of workers’ salaries, primary healthcare services, education, rural infrastructure and other essential public services at the local government level.

“The freezing of the statutory allocations due to the local governments of Osun State is not an administrative decision or a legal dispute. It is political terrorism by the Bola Tinubu-led APC government carried out with the instruments of the Nigerian State to achieve the singular objective of undermining the state government ahead of the coming governorship election in the State,” the statement read.

In his reaction, the chairman of the Democracy Leadership Alliance (DLA), Dr Oluwatosin Odeyemi, said his party is studying the situation and will issue a statement on it soon.

Also, the chairman of the Zenith Labour Party (ZLP), Adesuyi Olufemi, said he doesn’t have a reason for the EFCC to have requested that the state account be frozen, adding that he would want to have the details before he could take a position.

However, the chairman of the Peoples Democratic Party (PDP), Hon Sunday Bisi, said that for a federal government agency to order the freezing of the account is an act of illegality taken too far.

His words: “It is part of an undemocratic and strange attempt by the federal government to disrupt a democratically elected government and render it impotent to achieve its selfish end.

But the All Progressives Congress (APC) Osun State chapter said it is indifferent to the development.

Speaking with LEADERSHIP, the director of Media and Publicity, Chief Kola Olabisi, said only the EFCC is in a better position to explain why he requested that the Osun State Government’s account be frozen.

Electorates in the State react

Also speaking, a resident of Osun State, Bola Oladele, expressed dissatisfaction with the development but added that the government can continue to run logistics from other accounts it might have.

A community leader in Agunbelewo, Osogbo, Elder Tunji Olasupo, condemned the EFCC’s action, especially as the election approaches.

He said: “It is unfortunate that the EFCC decided to punish the Osun government for no reason, especially when the governorship election is about 10 days ahead.”

An economic expert and director at MOA Investment Company, Osogbo, Gbongan Olaide, said the EFCC has no power to freeze accounts, adding that if the account was actually frozen without due process, then First Bank is compromised.

He added that for an individual’s account to be frozen, there are statutory procedures, not to mention a state; he added that Osun State can approach the court for adjudication.