Economic and Financial Crimes Commission (EFCC) has explained why it placed a Post No Debit (PND) order on the bank accounts of the Osun State Government, saying the action was taken to prevent the alleged diversion of public funds currently under investigation.
In a statement posted on its official X account on Wednesday, the anti-graft agency said it decided to publicly clarify the reasons behind the move because of growing public interest, stressing that its action was unrelated to the forthcoming governorship election in the state.
According to the Commission, it has been investigating the Osun State Government since March 2026 over the alleged fraudulent management of Ecology Funds, Intervention Funds and allocations from the Federation Account Allocation Committee (FAAC), involving about N11 billion.
The EFCC disclosed that the investigation has already involved questioning some senior state officials, including the Accountant General of Osun State.
“The Commission has been busy investigating the Osun State Government since March, 2026, regarding alleged fraudulent handling of Ecology Funds, Intervention Funds and Federal Account Allocation Committee, FAAC account to the tune of N11,000,000,000 (Eleven Billion Naira only). To this end, some officials of the state government, especially the Accountant General of the State, have had interview sessions with investigators of the EFCC,” the statement said.
The anti-corruption agency noted that it had not initially planned to freeze the accounts but was compelled to act after detecting what it described as suspicious movements of funds beginning on August 2, 2026.
According to the EFCC, investigators observed substantial transfers from the government’s accounts into several corporate accounts, prompting an immediate intervention.
“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 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 Commission maintained that the decision was in line with its statutory responsibility to safeguard public resources and prevent the alleged looting of government funds.
“The EFCC’s preventive mandate is a public-inclined framework of safeguarding public funds, assets and resources. The Commission cannot watch idly while a state government’s account is being pillaged.”
Addressing concerns that the action could influence the forthcoming governorship election in Osun State, the Commission insisted that its operations are guided solely by law and not political considerations.
“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. 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.”
The EFCC further revealed that Osun is not the only state under scrutiny, adding that it is monitoring the finances of several other states as part of its efforts to promote accountability and transparency in the management 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.”
Reaffirming its neutrality, the Commission rejected allegations of political bias and insisted that its actions were taken strictly in the public interest.
“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.”
The EFCC also urged Nigerians to disregard what it described as misleading narratives surrounding the development.
“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.”