The Economic and Financial Crimes Commission (EFCC) has defended its decision to freeze the bank accounts of the Osun State Government, saying the action was taken to prevent the alleged diversion of public funds under investigation.
The anti-graft agency said it has been investigating the Osun State Government since March 2026 over the alleged fraudulent handling of ₦11 billion in Ecology Funds, Intervention Funds and allocations from the Federation Account Allocation Committee (FAAC).
In a statement on Wednesday, the EFCC said several state officials, including the Accountant General, had already been questioned as part of the ongoing investigation.
According to the Commission, the decision to place a Post No Debit (PND) order on the state’s accounts was prompted by what it described as suspicious movements of funds detected from 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 EFCC said.
The agency alleged that investigators observed “huge transfers of funds into different corporate entities” and moved quickly to halt further transactions by freezing the affected accounts.
Defending its action, the Commission insisted the move was in line with its statutory responsibility to safeguard public resources and had no political motive despite the forthcoming governorship election in Osun State.
“The Commission cannot watch idly while a state government’s account is being pillaged,” the statement read.
It added, “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.”
The EFCC stressed that allowing the election to influence its enforcement responsibilities would amount to a dereliction of duty.
The Commission further disclosed that it is monitoring the finances of other states with similar concerns, noting that several state governments are currently under investigation as part of efforts to promote accountability and transparency.
“The Commission has always pointed out that it is non-partisan and non-sectarian but always working in the overall interests of Nigerians,” it said.
Maintaining that the freeze was solely intended to protect public funds, the EFCC urged Nigerians to disregard what it described as false narratives surrounding its actions.
“The Osun State Government account was frozen to save public funds from being looted,” the Commission stated, adding that “the interests of all Nigerians are greater and will always be protected by the Commission.”
The anti-graft agency did not disclose the identities of the corporate entities that allegedly received the transfers or indicate when the investigation would be concluded.