Stephanie Peter
The Osun State Government has rejected the Economic and Financial Crimes Commission’s (EFCC) allegation that N11 billion was looted from its accounts, describing the claim as an attempt to justify what it called an illegal action through unfounded accusations.
In a statement posted on X on Thursday, the state’s Commissioner for Information and Public Enlightenment, Kolapo Alimi, insisted that no financial misconduct had occurred. He further alleged that the EFCC was acting on the directive of the former Osun State Governor, Gboyega Oyetola, to frustrate the current administration’s payment of palliatives to workers, a commitment the government said it had made months earlier.
The statement followed the EFCC’s decision to place a temporary restriction on the Osun State Government’s account while investigating the alleged mismanagement of N11 billion in Federation Account Allocation Committee (FAAC) funds, Ecology Funds, and Intervention Funds.
According to the EFCC, investigators detected multiple large transfers from the state government’s account to several corporate entities, prompting the commission to impose a temporary 72-hour post-no-debit restriction pending the outcome of its investigation. The anti-graft agency said the action was taken pursuant to the provisions of the EFCC (Establishment) Act, 2004, and the Money Laundering (Prevention and Prohibition) Act, 2022.
Legal experts have noted that while the EFCC may impose a temporary post-no-debit restriction during an investigation, any extension beyond the stipulated period would generally require a court order. The issue has since become one of the major legal questions arising from the dispute.
Responding to the action, the Osun State Government said all palliative payments to workers had already been completed before the restriction was imposed.
“Fortunately, we have paid all the palliatives to Osun State workers,” the statement said.
The statement added that the initiative was introduced to cushion the impact of the country’s economic hardship.
The government also maintained that the subsidy programme was not the first of its kind and alleged that the EFCC’s investigation was politically motivated.
It further stated that “there is no fund to loot in Osun State,” arguing that the state’s resources are being channelled into infrastructure projects, workers’ welfare and sectoral development for the benefit of residents.
The government also accused the EFCC of conducting what it described as a “witch-hunt” since March 2026, alleging that senior government officials had been subjected to repeated invitations and harassment intended to distract them from governance.
It maintained that if the anti-graft agency had credible evidence of wrongdoing, it should have followed established legal procedures rather than freezing the state’s accounts.
“There are established procedures for bringing suspects to book instead of a politically motivated and unlawful freezing of government accounts without recourse to the rule of law,” the statement said.
The statement concluded by describing the allegations as false and an attempt to justify what it called an illegal action, insisting that the commission’s claims would neither withstand judicial scrutiny nor sway the court of public opinion.
The EFCC has maintained that its investigation is based on intelligence reports and financial records, and that the temporary restriction was necessary to preserve the funds pending the outcome of its investigation.