Osun rejects EFCC’s N11bn fraud claim, alleges political motivation

The Osun State Government has vehemently rejected the Economic and Financial Crimes Commission’s (EFCC) assertion that it froze the state’s bank account due to an ongoing investigation into alleged N11 billion fraud and suspicious fund movements. The government described the claim as false and an attempt to legitimize what it termed an "unlawful action."

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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.

In a statement, Osun’s Commissioner for Information, Kolapo Alimi, insisted the account restriction was not linked to financial misconduct. Instead, the government alleged the EFCC acted under the directive of former governor Gboyega Oyetola to prevent the disbursement of palliatives to civil servants ahead of the August 15 governorship election. "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 read.

The EFCC had previously stated it was investigating the state government since March 2026 over alleged fraudulent handling of Ecology Funds, Intervention Funds, and Federal Account Allocation Committee (FAAC) allocations totaling approximately N11 billion. The commission reported observing "huge transfers" from government accounts into suspicious corporate entities starting August 2, prompting the freezing of the accounts to halt further movement of public funds.

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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 maintained its action was part of its statutory duty to protect public resources and denied any connection to the upcoming governorship election. Osun officials have been interrogated since March without evidence of wrongdoing being presented, according to the state government. Alimi asserted that Osun has a record of transparency and prudent financial management, stating, "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."

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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.