The Economic and Financial Crimes Commission (EFCC) says it froze the bank accounts of the Osun State government over the alleged fraudulent handling of ₦11 billion in ecological and intervention funds.
In a statement issued on Wednesday, the anti-graft agency disclosed that it has been investigating the state government since March over the suspected mismanagement of the funds.
The EFCC said the decision to place restrictions on the accounts followed findings from its ongoing probe into how the ecological and intervention funds were handled.
According to the EFCC, it has been investigating the Osun State Government since March 2026 over the alleged fraudulent handling of Ecology Funds, Intervention Funds and allocations from the Federation Account Allocation Committee (FAAC) amounting to N11 billion.
“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, FAAC account to the tune of N11,000,000,000 (Eleven Billion Naira only),” the statement said.
The Commission disclosed that some officials of the state government, including the Accountant General, had already been questioned as part of the investigation.
“To this end, some officials of the state government, especially the Accountant General of the State, have had interview sessions with investigators of the EFCC,” it added.
The EFCC stated that although the investigation had been ongoing for months, it only decided to place a Post-No-Debit restriction on the state’s account after detecting what it described as suspicious transfers of funds beginning on August 2.
“These ongoing investigations of the state government would not have warranted any placement of 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 said.
“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-graft agency maintained that the decision was in line with its statutory responsibility to safeguard public funds and prevent financial crimes.
“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,” it said.
While acknowledging that the governorship election is imminent, the Commission insisted that the timing of the action was dictated solely by developments uncovered during its investigation.
“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 further stated that Osun was not the only state under scrutiny, saying it is monitoring the finances of several state governments as part of its anti-corruption mandate.
“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,” the statement read.
Reiterating its claim of political neutrality, the Commission said its actions were driven solely by the need to protect public resources.
“The Commission has always pointed out that it is non-partisan and non-sectarian but always working in the overall interests of Nigerians. The Osun State government account was frozen to save public funds from being looted.”
The EFCC also urged Nigerians to disregard claims questioning its motives.
“The public is enjoined to ignore false narratives and deliberate demonization of the works of the EFCC. The interests of all Nigerians are greater and will always be protected by the Commission,” the statement added.
The clarification comes after the Osun State Government accused the EFCC of unlawfully freezing one of its statutory allocation accounts barely days before the August 15 governorship election and announced plans to challenge the action in court.
