Osun Gov’t Petitions EFCC: Accuses Oyetola of $20M Fraud in Health Sector
The Osun State Government has formally petitioned the Economic and Financial Crimes Commission (EFCC) to investigate former Governor and current Minister of Blue Economy, Gboyega Oyetola, over allegations of misappropriating a $20 million World Bank health grant. The petition, dated March 7, 2025, accuses Oyetola of money laundering, financial misconduct, and violations of the Public Procurement Act during his tenure as governor.
According to the petition, Oyetola chaired a special Health Intervention Committee responsible for allocating the World Bank grant, which was intended for health sector improvements in Osun State. The committee, comprising former officials such as Remi Omowaye, Dr. Rafiu Isamatu, and Bola Oyebamiji, decided to utilize the entire $20 million for renovating 320 primary healthcare centers across the state.
The state government’s lawyer, Pelumi Olajengbesi, alleges that the committee violated the Public Procurement Act, 2007, by not initiating a mandatory bidding process. Instead, contracts were allegedly awarded to individuals closely associated with Oyetola’s administration, including cabinet members, agency heads, and personal associates.
The petition claims that some beneficiaries had no prior construction experience, citing businesses such as food vendors, salon operators, supermarket owners, and web designers among the contractors.
Specific companies mentioned in the petition include Poshpreneurs Nig., reportedly owned by the children of former Head of Service Olowogboyega Oyebade; Dotfam Multiventures Ltd, linked to the siblings of the former APC State Chairman; The Ice Firms Nig. Ltd, allegedly owned by former Commissioner for Local Government and Chieftaincy Affairs Adebayo Adeleke; and Afamoks Web International, associated with former Amotekun Field Commander Amitolu Shittu. The state government contends that these companies executed substandard renovation work while receiving full payments, leading to the misappropriation of the $20 million grant.
In addition to the allegations concerning the World Bank grant, the state government 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 names former ALGON Chairman Abiodun Idowu, Secretary Olubisi Oladosu, 28 former local government caretaker chairmen, and former Commissioner for Local Government and Chieftaincy Affairs Yekeen Adebayo Adeleke as key figures in the alleged scheme.
Financial records cited in the petition indicate that funds were repeatedly transferred from the ALGON account at Zenith Bank into the private account of Akeem Ibitoye, a local government employee and Director of Finance at Ejigbo Local Government. The state government alleges that large cash withdrawals were made without records of the funds being used for official projects.
Responding to these allegations, former Commissioner Adebayo Adeleke dismissed them as frivolous, stating that he had not been invited by the EFCC nor seen a copy of the petition. He suggested that the allegations were politically motivated, aimed at tarnishing his reputation due to his criticisms of the current administration.
This development adds to the ongoing political tension in Osun State, with both the current and former administrations trading accusations over financial management and governance practices.