Osun State Denies EFCC's N11bn Fraud Allegation, Claims Political Motive

The Osun State Government has rejected the claim from the Economic and Financial Crimes Commission (EFCC) that it froze its bank account due to an investigation into the alleged diversion of N11 billion. The state described the allegation as false and an attempt to justify what it called "an unlawful action."

In a statement on Thursday signed by Kolapo Alimi, the Commissioner for Information, the state government said the account freeze was not linked to any financial misconduct. Instead, it claimed that the action aimed to stop the payment of palliatives to civil servants ahead of the August 15 governorship election.

The government accused the EFCC of acting on the orders of the former governor, Gboyega Oyetola, to freeze the account and block the payment of promised palliatives to workers. "The real reason the commission froze the state account on the order of Gboyega Oyetola was to stop the payment of palliatives which the state government promised the workers some months ago," the statement said.

This response comes after the EFCC explained on Wednesday why it restricted an Osun State Government account. The anti-graft agency stated that it has been investigating the state government since March 2026 over the alleged fraudulent handling of Ecology Funds, Intervention Funds, and Federal Account Allocation Committee (FAAC) allocations totaling about N11 billion.

The EFCC reported that investigators noticed "huge transfers" from government accounts to what it called suspicious corporate accounts starting from August 2. This led to the freezing of the account to prevent further movement of public funds. "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's statement said.

The EFCC insisted that this action is part of its duty to protect public resources. It denied claims that its actions were related to the upcoming governorship election. PREMIUM TIMES had earlier reported that the EFCC froze an Osun State Government account with First Bank, a move that the Adeleke administration labeled as politically motivated.

In the Thursday statement, Mr Alimi said EFCC had subjected senior officials to repeated questioning since March, but no evidence of financial wrongdoing was found. He argued that Osun has a reputation for budget transparency and good financial management, insisting that there are no diverted public funds as the EFCC claims.

"There is no fund to loot in Osun State as the little resources we have are expended on mega projects, workers’ welfare and sectoral development," Mr Alimi said. The commissioner also questioned the legality of freezing a state’s bank account without a court order or criminal charges. He described the EFCC’s public allegations as an afterthought meant to justify an action that has faced much criticism.

The state’s Attorney-General and Commissioner for Justice, Oluwole Jimi-Bada, also questioned the legality of the EFCC's actions. He maintained that the EFCC does not have the constitutional power to freeze the accounts of a state government without following due legal processes.