EFCC Freezes Osun Account, Says Move Stopped Alleged N11bn Looting Ahead of Poll

The Economic and Financial Crimes Commission (EFCC) has defended its decision to place a Post-No-Debit (PND) restriction on an Osun State Government account domiciled with First Bank of Nigeria, insisting the move was aimed at preventing the alleged diversion of about N11 billion in public funds and not an attempt to interfere in the state’s forthcoming governorship election.

The anti-graft agency said the account was frozen as part of an ongoing investigation into the alleged fraudulent management of Ecology Funds, Intervention Funds and allocations from the Federation Account Allocation Committee (FAAC).

The development has sparked a fresh confrontation between the EFCC and the Osun State Government, which accused the commission of attempting to cripple government operations just days before the August 15 governorship election.

In a statement issued on Wednesday by the Commissioner for Information and Public Enlightenment, Kolapo Alimi, the Osun State Government described the action as politically motivated, alleging that the affected account was one of the administration’s salary accounts.

The government argued that the restriction was designed to disrupt the activities of Governor Ademola Adeleke’s administration at a critical period ahead of the election.

However, the EFCC dismissed the allegation, maintaining that the freeze order was purely investigative and had no connection with the political process in the state.

In a statement signed by its Head of Media and Publicity, Dele Oyewale, the commission disclosed that investigations into the Osun State Government began in March 2026 following allegations of financial impropriety involving public funds estimated at N11 billion.

According to the EFCC, several state officials, including the Accountant-General, have already been questioned by investigators over the management of the funds under scrutiny.

“The Economic and Financial Crimes Commission (EFCC) is compelled to publicly address issues pertaining to its preventive moves in freezing the bank account of the Osun State Government, without prejudice to the imminent governorship election in the state,” the statement said.

The commission explained that while the investigation had been ongoing for months, the decision to impose the PND order became necessary after investigators detected what it described as suspicious movements of funds beginning on August 2, 2026.

It alleged that large sums were being transferred from government accounts into various corporate entities, prompting swift intervention to prevent 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 EFCC stated.

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Defending its action, the agency stressed that protecting public resources falls within its statutory mandate and that it could not stand by while funds belonging to the people of Osun State were allegedly being diverted.

“The EFCC’s preventive mandate is a public-inclined framework of safeguarding public funds, assets and resources. The Commission cannot watch idly while a state government’s account is being pillaged,” the statement added.

The anti-graft agency acknowledged the proximity of the governorship election but insisted that electoral considerations could not override its legal responsibility to investigate suspected financial crimes and safeguard public funds.

“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 EFCC said.

The commission further revealed that Osun State is not the only state under scrutiny, noting that investigations are ongoing in several states as part of efforts to promote accountability and transparency in the management of public resources.

Reaffirming its neutrality, the EFCC described itself as a non-partisan institution committed to protecting the interests of Nigerians irrespective of political affiliations.

“The Osun State Government account was frozen to save public funds from being looted. 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,” Oyewale stated.

Meanwhile, documents obtained by journalists indicate that the freeze order was linked to an earlier correspondence dated April 15, 2026, sent to the Managing Director of First Bank regarding ongoing investigation activities.

In the letter, signed by Assistant Commander of the EFCC, Adenike Babalola, on behalf of the Director of Investigation, the commission requested the bank to place a Post-No-Debit restriction on the account.

The request, according to the letter, was made pursuant to Section 38(1) and (2) of the EFCC Act, 2004, and Section 24 of the Money Laundering (Prevention and Prohibition) Act, 2022.

The controversy has further heightened political tensions in Osun State, with both the state government and the anti-graft agency standing firmly by their positions as the countdown to the August 15 governorship election continues.