The Osun State Government has formally asked the Economic and Financial Crimes Commission (EFCC) to investigate former governor and current Minister of Blue Economy, Gboyega Oyetola, over alleged financial misconduct. The government claims Oyetola mismanaged a $20 million World Bank health grant intended to improve healthcare in the state.
The petition, dated March 7, 2025, was submitted by the state’s lawyer, Pelumi Olajengbesi. It accuses Oyetola of money laundering, financial mismanagement, and violations of the Public Procurement Act in handling the grant.
During Oyetola’s tenure, he chaired a special Health Intervention Committee responsible for distributing the funds. The committee, which included former government officials such as Remi Omowaye, Dr. Rafiu Isamatu, and Bola Oyebamiji, decided to use the entire $20 million to renovate 320 primary healthcare centers across the state. However, the petition claims the contract process was flawed and illegal.
According to the document, Oyetola’s administration failed to follow the Public Procurement Act, which requires open bidding to ensure qualified contractors handle government projects. Instead, contracts were allegedly awarded to individuals linked to Oyetola’s associates, including cabinet members, agency heads, and close allies.
The petition also names several businesses that reportedly received contracts despite having no construction experience. These include Poshpreneurs Nig., owned by the children of former Head of Service Olowogboyega Oyebade; Dotfam Multiventures Ltd, linked to the siblings of a former APC State Chairman; The Ice Firms Nig. Ltd, allegedly owned by Commissioner for Local Government and Chieftaincy Affairs, Adebayo Adeleke; and Afamoks Web International, linked to former Amotekun Field Commander, Amitolu Shittu.
The state government claims these companies delivered poor-quality renovation work but were still paid in full, leading to a mismanagement of the funds.
In addition to the health grant allegations, the government also accuses Oyetola’s administration of laundering over ₦1.5 billion through the Osun chapter of the Association of Local Governments of Nigeria (ALGON) between January and October 2022.
The petition alleges that former ALGON Chairman, Abiodun Idowu, Secretary, Olubisi Oladosu, and 28 former local government caretaker chairmen were involved in the scheme. Financial records included in the petition claim that large sums of money were repeatedly transferred from ALGON’s Zenith Bank account into the private account of a local government employee, Akeem Ibitoye, who served as Director of Finance at Ejigbo Local Government.
The state government alleges that withdrawals ranging from ₦30 million to over ₦10 million per day were made in cash, with no clear record of how the funds were spent.
In response to the allegations, former Commissioner for Local Government and Chieftaincy Affairs, Adebayo Adeleke, dismissed the claims, calling them baseless.
He said, “EFCC has not invited me and I have not seen a copy of the petition for me to know what it is all about. If there is no proof, then the allegations are frivolous and of no stance. I have become a thorn in the flesh of Gov Adeleke and PDP, and I won’t be surprised if some baseless allegations are levied against me. Anyway, they think trying to dirty my white garment will make me keep mute about their fraudulent ways of governance.”
