Account Freezing: Osun govt dismisses EFCC’s ₦11b alleged looting, says action illegal

The Osun State Government has dismissed allegations by the Economic and Financial Crimes Commission, EFCC, that it froze the state’s bank accounts over the alleged looting of N11 billion.

In a statement issued on Thursday in Osogbo, the Commissioner for Information and Public Enlightenment, Kolapo Alimi, described the claim as an attempt to justify an unlawful action.

The government said the anti-graft agency’s explanation was unfounded and intended to cover what the government described as an illegal freezing of the state’s accounts.

According to Alimi, “the accounts were frozen to prevent the payment of palliatives approved for civil servants. The action was carried out on the orders of former Governor and Minister of Marine and Blue Economy, Adegboyega Oyetola.

“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. This account freezing marks the climax of Oyetola’s historic anti-workers’ obsession.”

The commissioner stated that despite the freezing of the accounts, the government had successfully paid the palliatives to workers, noting that the payments followed negotiations with labour unions aimed at cushioning the effects of the prevailing economic hardship.

He rejected the EFCC’s allegation that public funds had been diverted, insisting that government resources were being utilised for infrastructure projects, workers’ welfare and other developmental programmes across the state. 

“There is no fund to loot in Osun State as the little resources we have are expended on the many mega projects, workers’ welfare and sectoral developments for the benefit of the masses,” he said.

Alimi also accused the EFCC of conducting what he described as a politically motivated investigation since March 2026, alleging that senior government officials had been subjected to repeated invitations and harassment without any evidence of wrongdoing.

“It is sad that a commission will lie to destroy the image of a state to cover up an illegal action that has backfired. This alibi from the commission is an afterthought and it cannot stand the test of truth in reality and court of public opinion,” Alimi added.

The EFCC had on Wednesday announced that it froze the Osun State Government’s accounts as a preventive measure while investigating alleged financial transactions involving about N11 billion.

EFCC maintained that the action was taken to preserve funds pending the conclusion of its investigation. 

The commission denied acting on political instructions and said its intervention was in line with its statutory mandate.

Following the action by the anti-graft agency, the Osun State Government commenced legal proceedings against the EFCC, challenging the freezing of its accounts and seeking judicial relief over what it described as an unlawful interference with the state’s finances.

The state government argued that if the commission possessed credible evidence of financial misconduct, it should follow established legal procedures by prosecuting those involved rather than freezing government accounts. 

It maintained that the EFCC’s allegations were unsupported and intended to tarnish the image of the administration.