EFCC Reveals Why It Froze Osun Govt Account

The Economic and Financial Crimes Commission (EFCC) has said its decision to freeze an Osun State Government bank account was aimed at preventing the alleged diversion of public funds under investigation.

The anti-graft agency said the action followed months of investigation into the management of funds belonging to the state government.

It added that the restriction placed on the account was part of measures to protect public money while its investigation continues.

In a statement released through its official communication channel, the commission disclosed that it began investigating the Osun State Government in March 2026 over the alleged mismanagement of about N11 billion.

According to the EFCC, the funds being investigated include Ecology Funds, Intervention Funds and allocations received from the Federation Account Allocation Committee (FAAC).

The commission said it gathered intelligence suggesting that money linked to the ongoing investigation could be moved out of the account.

It maintained that the decision to place the account on restriction was necessary to stop any possible diversion before the investigation is concluded.

According to the EFCC, “The Commission’s action was informed by the need to prevent the alleged diversion of public funds currently under investigation. The account restriction is a lawful step taken in line with ongoing investigations into the handling of about N11 billion in Ecology Funds, Intervention Funds and FAAC allocations.”

The agency insisted that its action should not be interpreted as political interference ahead of the August 15 governorship election in the state.

It stressed that its investigation was based on allegations of financial misconduct and not on the electoral calendar.

The clarification came a day after reports emerged that one of the Osun State Government’s accounts domiciled with First Bank had been placed on “Post No Debit” status by the commission.

The affected account is said to be one of the channels used by the state government for the payment of workers’ salaries and other official obligations.

Reacting to the development, Governor Ademola Adeleke alleged that the EFCC was planning to freeze government accounts as part of efforts to disrupt the activities of his administration ahead of the governorship election.

Reacting to the reports, the governor had argued that the anti-graft agency lacked the legal authority to freeze the accounts of a state government.

He also described the move as an attempt to cripple governance just days before voters head to the polls.

In a statement issued by the Commissioner for Information and Public Enlightenment, Kolapo Alimi, the Osun Government maintained that there was no legal justification for such action.

The government insisted that freezing official accounts could affect salary payments, government projects and other essential public services.

Shortly after the allegations, a source within the state government confirmed that the account had indeed been restricted.

The source said, “I can confirm that the state government account has been frozen by the EFCC. It is no longer an allegation. The governor will address the press shortly to update the public on the situation.”

Following the growing public attention, the EFCC has now offered its own explanation, saying the restriction was solely connected to an ongoing financial crime investigation.

The commission maintained that its investigation covers the use of several categories of public funds received by the state government over a period of time.

It noted that investigators are examining financial records and transactions linked to the allocations.

The agency added that the account restriction is a temporary investigative measure and forms part of efforts to preserve evidence while inquiries continue.

The commission has not indicated when the restriction on the account may be lifted. It also did not disclose whether additional accounts or individuals are being investigated in connection with the alleged N11 billion under probe.