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EFCC says the freezing of the Osun State Government account was driven by an ongoing investigation into the alleged fraudulent handling of ₦11 billion in Ecology Funds, Intervention Funds and FAAC allocations—not the August 15 governorship election.
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Anti-graft agency alleges it detected suspicious transfers of large sums from the state’s accounts into multiple corporate accounts from August 2, prompting it to impose a Post No Debit (PND) order to halt further movement of funds.
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Commission insists the account restriction was a preventive measure to safeguard public resources, saying it could not stand by while state funds were allegedly being diverted.
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EFCC dismisses allegations of political bias, says several other states are also under financial scrutiny and urges Nigerians to disregard claims that the action was aimed at influencing the Osun governorship election.
August 5, (THEWILL) — The Economic and Financial Crimes Commission (EFCC) has defended its decision to freeze the Osun State Government’s bank account, revealing that the action was prompted by an ongoing investigation into the alleged diversion and fraudulent handling of ₦11 billion in public funds.
The EFCC’s statement comes hours after Osun State Governor Ademola Adeleke announced plans to challenge the freezing of the state’s salary account at the Federal High Court in Osogbo.
THEWILL earlier reported an official EFCC directive dated August 5, 2026, which instructed the Managing Director of First Bank, through its Chief Compliance Officer, to place the Osun State Government Salary Account on “Post No Debit” (PND) status.
The letter, signed on behalf of the Director of Investigation by ACE I. Adesina S. Sobolo, stated that the restriction was imposed in connection with the Commission’s “investigation activities.” It cited Sections 38(1) and (2) of the EFCC (Establishment) Act, 2004, and Section 24 of the Money Laundering (Prevention and Prohibition) Act, 2022, as the legal basis for the directive.
THEWILL had also reported that Governor Adeleke, who addressed journalists at a press conference in Osogbo on Wednesday, described the action of the anti-graft agency as unconstitutional, unlawful and a dangerous abuse of federal power, warning that allowing such actions to go unchallenged could undermine Nigeria’s democratic system.
The governor alleged that the freezing of the account was the latest in what he described as a coordinated campaign of intimidation against his administration ahead of the August 15 governorship election. According to him, Osun State has witnessed months of disruption to local government administration, repeated police raids, harassment of political supporters and violent attacks.
Adeleke had accused the anti-graft agency of acting without a court order and described the action as “an attack on democracy”, alleging it formed part of a broader campaign to destabilise his administration ahead of the August 15, 2026 governorship election.
Responding in a statement on Wednesday evening, the anti-graft agency said the account restriction had nothing to do with the August 15 governorship election in Osun State but was a preventive measure taken to protect public funds amid what it described as suspicious financial transactions.
The Commission said its investigation into the finances of the Osun State Government began in March 2026, focusing on the alleged handling of Ecology Funds, Intervention Funds and Federal Account Allocation Committee (FAAC) allocations amounting to ₦11 billion.
According to the EFCC, several state officials, including the Accountant-General of Osun State, have already been questioned by investigators as part of the ongoing probe.
The Commission disclosed that although the investigation had been ongoing for months, it initially had no intention of freezing the state’s account until investigators detected what it described as unusual movements of funds beginning on August 2, 2026.
According to the EFCC, large sums were allegedly transferred from government accounts into several corporate accounts in transactions considered suspicious.
“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 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 were being moved”, the statement read.
The EFCC maintained that the action was necessary to prevent further movement of public funds while investigations continue.
Responding to criticism that the account restriction was politically motivated because it came days before the governorship election, the Commission insisted that its actions were independent of the electoral process.
While acknowledging that the election is imminent, the EFCC said it could not ignore what it considered a threat to public resources simply because of political considerations.
“The Commission is fully aware of the impending governorship election in Osun State, but 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 and fail to perform its legally assigned functions”, it stated.
Agency Rejects Political Allegations
The anti-graft agency also rejected accusations that it was acting on behalf of any political interest, insisting that its operations remain non-partisan and guided strictly by law.
According to the Commission, Osun is not the only state under investigation, disclosing that the finances of several other state governments are also being scrutinised.
“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.”
It maintained that the freezing of the Osun account was solely intended to prevent the alleged looting of public funds.
“The Osun State Government account was frozen to save public funds from being looted”, the statement added.
The EFCC urged Nigerians to disregard what it described as attempts to politicise its actions and portray the Commission as partisan.
It maintained that protecting public funds remains one of its core statutory responsibilities and vowed to continue carrying out its mandate without fear or favour.
“The public is enjoined to ignore false narratives and deliberate demonisation of the works of the EFCC. The interests of all Nigerians are greater and will always be protected by the Commission”, the statement concluded.
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