The suspension was announced in a statement by the Secretary to the State Government, Musa Ikhilor.
He said the governor also approved the suspension of the Chairman of the Local Government Service Commission, Damian Lawani.
The SSG noted that the two top officials were suspended over allegations of grave official and financial interactions.
Read Also: Edo election tribunal: INEC to start calling witnesses Thursday
According to the statement, the suspension of Osagie and Lawani became necessary to enable the government to carry out a thorough investigation into the allegation of financial infractions leveled against them.
The suspension, which takes immediate effect, is pending the conclusion of an investigation into the allegations.
The suspension came less than three months after the two officials were appointed.