The Economic and Financial Crimes Commission (EFCC) has defended its decision to freeze First Bank account belonging to the Osun State Government, saying the action was taken to prevent the alleged diversion of public funds amounting to N11 billion currently under investigation.

The anti-graft agency said it began investigating the Osun State Government in March 2026 over the alleged fraudulent handling of Ecology Funds, Intervention Funds and allocations from the Federal Account Allocation Committee (FAAC).

In a statement on Wednesday, the EFCC disclosed that its investigation had already led to the questioning of some state officials, including the Accountant General, over the management of the funds.

According to the commission, the freezing of the accounts became necessary after investigators detected what it described as suspicious movements of large sums of money from the state’s accounts into various corporate entities beginning from August 2, 2026.

The commission explained that it imposed a “Post No Debit” restriction on the affected accounts after noticing what it called “huge transfers” into suspicious accounts, insisting it could not stand by while public funds were allegedly being diverted.

“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 said.

It maintained that the action was purely a preventive measure aimed at safeguarding public resources and was not influenced by the forthcoming governorship election in Osun State.

“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 statement added.

The EFCC also stressed that it was monitoring the finances of several other states, noting that many state governments were currently under investigation as part of its efforts to promote accountability and transparency.

Reaffirming its neutrality, the commission said it remained non-partisan and was acting solely in the interest of protecting public funds.

It urged Nigerians to disregard what it described as false narratives and attempts to discredit its operations, insisting that the freezing of the accounts was intended to prevent the alleged looting of state resources.

Meanwhile, the Osun State Government has announced plans to commence legal proceedings against the EFCC over the freezing of its accounts, describing the agency’s action as unlawful and capable of crippling government activities.

The state’s Attorney General and Commissioner for Justice, Oluwole Jimi-Bada, said Governor Ademola Adeleke had directed him to file a suit before the Federal High Court challenging the decision.

According to Jimi-Bada, the state government was informed that the EFCC had issued a “Post No Debit” directive to First Bank, where several government accounts are domiciled, thereby restricting transactions on the accounts.

While acknowledging the EFCC’s statutory powers to investigate financial transactions, the Attorney General argued that the commission lacked the legal authority to freeze a state government’s accounts without first obtaining a court order.

“I have the mandate of the governor to proceed to the Federal High Court to challenge this move. EFCC can investigate the accounts but it can’t freeze the accounts without order of court,” he said.

He warned that the restriction could significantly disrupt the day-to-day administration of the state and hinder the delivery of essential public services pending the resolution of the legal dispute.