EFCC Clarifies Reasons Behind Freezing Osun State Government Account
The Economic and Financial Crimes Commission (EFCC) has released a statement explaining why it placed a Post No Debit restriction on the Osun State Government’s bank account. According to the agency, the action followed the detection of unusually large transfers to several suspicious corporate accounts.
The EFCC stressed that the freeze is not connected to the August 15 governorship election. Instead, it forms part of an ongoing investigation into the alleged fraudulent management of approximately ₦11 billion in public funds, including Ecology Funds, Intervention Funds, and allocations from the Federation Account Allocation Committee.
Dele Oyewale, Head of Media and Publicity for the EFCC, disclosed the details in a Wednesday statement titled “Why EFCC Froze Osun State Government Account.” He noted that the commission has been scrutinizing the state’s finances since March 2026.
The statement reads: “The Commission has been busy investigating the Osun State Government since March 2026 regarding alleged fraudulent handling of Ecology Funds, Intervention Funds and Federal Account Allocation Committee account to the tune of ₦11bn.”
Officials from the state government, including the Accountant‑General, have already appeared before investigators for questioning. The EFCC reiterated that the allegations remain under investigation and have not been proven in court.
While the probe alone would not normally trigger a Post No Debit order, the EFCC said it observed a sudden and unwarranted movement of funds from the state’s accounts beginning August 2, 2026. Substantial sums were transferred to various corporate entities, prompting the commission to act swiftly to halt further transactions.
“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 statement added.
The EFCC rejected claims that the freeze was politically motivated or aimed at disrupting the state government ahead of the election. It emphasized its statutory duty to protect public assets from possible diversion.
“The Commission cannot watch idly while a state government’s account is being pillaged,” the agency said, adding that the impending election does not excuse it from fulfilling its legal responsibilities.
The commission also noted that Osun State is not the sole focus of its investigations; several other states are under similar scrutiny to promote accountability and prevent misuse of public resources.
Maintaining a non‑partisan stance, the EFCC urged the public to disregard narratives portraying the action as partisan, insisting the freeze was intended to safeguard public funds from being looted.
