The Economic and Financial Crimes Commission 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 ahead of the August 15 governorship election.
The anti-graft agency said it had been investigating the financial activities of the state government since March 2026 over the alleged handling of about N11bn in Ecology Funds, Intervention Funds and allocations received from the Federation Account Allocation Committee.
The EFCC, in a statement posted on its official X account on Wednesday, said some officials of the Osun State Government, including the Accountant General, had been questioned as part of the investigation.
The commission, however, said the investigation by itself would not have been enough reason to freeze the accounts of the state government.
It said the decision became necessary after it allegedly detected suspicious movement of large sums of money from the accounts beginning from August 2.
According to the commission, huge amounts were transferred from government accounts to various corporate entities in transactions it considered suspicious.
The EFCC said it moved quickly to stop the transfers by placing a Post No Debit order on the accounts.
“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 development has triggered a fresh confrontation between the anti-graft agency and the Osun State Government, coming less than two weeks before the state’s governorship election.
Governor Ademola Adeleke has described the action as illegal and challenged the EFCC Chairman, Ola Olukoyede, to explain publicly why the accounts were frozen.
Speaking with journalists at the Government House in Osogbo on Wednesday, Adeleke demanded that the commission provide evidence to justify its action.
“All I ask is for the EFCC chairman to explain to the good people of Osun State and to Nigerians in general why he froze Osun State Government Account, and show proof to support whatever reason he presents,” the governor said.
The governor also directed the state Attorney General and Commissioner for Justice, Oluwole Jimi-Bada, SAN, to challenge the action at the Federal High Court in Osogbo.
Jimi-Bada argued that although the EFCC had the power to investigate the financial activities of government agencies and officials, it could not freeze the state’s accounts without first obtaining a court order.
He said the state government would seek judicial redress over the matter.
The dispute has therefore raised questions about the powers of the EFCC to restrict access to government accounts during an ongoing investigation and the circumstances under which such an action can be taken.
The EFCC, however, maintained that its action was within its preventive responsibility to protect public funds.
The commission said it could not sit back and watch public money being moved out of government accounts when it had reason to suspect that the funds were being diverted.
It also rejected suggestions that the upcoming governorship election influenced its decision.
“The Commission’s preventive mandate is a public-inclined framework of safeguarding public funds, assets and resources,” it said.
“The Commission cannot watch idly while a state government’s account is being pillaged. 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 commission added that it would be wrong to use the election as a reason to stop it from performing its legal duties.
“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,” it stated.
The EFCC also stressed that Osun State was not the only state whose finances were being monitored.
According to the commission, it is investigating and monitoring the finances of several state governments as part of efforts to promote accountability and prevent the misuse of public funds.
“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,” it said.
The commission insisted that it was not targeting the Adeleke administration for political reasons.
It said its activities were non-partisan and aimed at protecting the interests of Nigerians.
“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,” it said.
The EFCC urged members of the public to disregard what it described as false reports and attempts to discredit the commission over the matter.
“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,” it added.
The account freeze comes at a politically sensitive time in Osun State, where political activities have intensified ahead of the August 15 governorship election.
The poll is expected to be closely watched because of the political importance of the state and the contest between the major political parties.
Adeleke, who is seeking another term, is the candidate of the Peoples Democratic Party, while the All Progressives Congress is seeking to regain control of the state.
The timing of the EFCC action has consequently attracted political attention, with the state government raising concerns about its possible impact on the administration and public activities ahead of the election.
The EFCC, however, has insisted that the timing was dictated by the alleged movement of funds rather than the election.
The commission said its investigation began months before the election period and that the latest action was triggered by transactions it considered suspicious.
The N11bn under investigation reportedly covers different categories of funds received or managed by the state government, including Ecology Funds, Intervention Funds and allocations from the federation account.
Such funds are intended for government programmes and public projects, making their management a matter of public interest.
The EFCC’s investigation is expected to determine whether the funds were properly applied or diverted for purposes other than those for which they were released.
For now, the two sides remain divided over the legality and necessity of the account freeze.
While the EFCC says it acted to prevent the alleged looting of public funds, the Adeleke administration insists that the commission must justify its action and obtain the necessary legal authority.
The planned court action by the Osun State Government could therefore determine whether the EFCC acted within its powers and whether the restrictions on the state’s accounts should remain in place.
The case is also likely to attract wider attention because of the proximity of the dispute to the August 15 governorship election and the wider debate over the role of anti-corruption agencies in politically sensitive periods.
Until the court or relevant authorities resolve the dispute, the EFCC has maintained that its priority is to protect public resources, while the Osun State Government insists that its accounts were frozen unlawfully.