EFCC Directs First Bank to Freeze Osun Government Account

The Economic and Financial Crimes Commission (EFCC) has directed First Bank to place a restriction on an account belonging to the Osun State Government.

Governor Ademola Adeleke disclosed the development during a press conference in Osogbo, describing the action as unlawful and alleging that the EFCC instructed the bank to freeze the state's account without obtaining a court order.

According to a letter dated August 5, 2026, with reference number **CR:3000/EFCC/ABJ/HQ/PFS/TA/OSUN/VOL.17/666**, the EFCC requested the bank to place a **Post-No-Debit (PND)** restriction on the account. The letter, signed by the Commission's Director of Investigation, Adenike S. Babalola, stated that the directive was issued pursuant to **Section 38(1) and (2) of the EFCC (Establishment) Act, 2004**, and **Section 24 of the Money Laundering (Prevention and Prohibition) Act, 2022**.

Reacting to the development, Adeleke alleged that the move was part of efforts to influence the August 15 governorship election in the state, warning that it posed a serious threat to democracy.

"We received a letter from our banker forwarding the EFCC's directive to freeze the Osun State Government account. This action was taken without any court order," the governor said.

He argued that federal agencies must operate within the bounds of the law and respect the constitutional rights of state governments.

"We are supposed to be in a democracy where the rule of law must prevail. We cannot accept a situation where federal agencies trample on the constitutional rights of sub-national governments," Adeleke stated.

The governor called on the EFCC to publicly explain the reasons behind its decision and provide evidence to justify the restriction.

He also announced that he had directed the Osun State Attorney General, Barrister Jimi Bada (SAN), to challenge the action before the Federal High Court in Osogbo.

 Meanwhile, the Commissioner for Finance, Adeola Ogungbile, dismissed suggestions that the state government's statutory allocation was being used to fund Governor Adeleke's re-election campaign.

He said the governor's bid for a second term was driven by public support based on the administration's performance rather than government funds.

The development comes ahead of the August 15 Osun State governorship election, where Governor Adeleke is seeking reelection.

Why We Froze Osun Government Account – EFCC
The Economic and Financial Crimes Commission (EFCC) has explained why it froze the bank accounts of the Osun State Government, stating that the move was aimed at preventing the alleged diversion of public funds and was unrelated to the forthcoming governorship election in the state.

In a statement issued on Wednesday by its Head of Media and Publicity, Dele Oyewale, the Commission said it has been investigating the Osun State Government since March 2026 over the alleged mismanagement of about ₦11 billion in Ecology Funds, Intervention Funds, and allocations from the Federation Account Allocation Committee (FAAC).

According to the EFCC, several state officials, including the Accountant General of Osun State, have been questioned as part of the ongoing investigation.

The anti-graft agency said it had no initial plans to place a Post No Debit (PND) order on the state's accounts. However, it claimed that investigators detected what they described as unusual and rapid movement of funds beginning on August 2, 2026.

The Commission alleged that substantial sums were transferred from government accounts into the accounts of several corporate entities considered suspicious, prompting it to freeze the affected accounts to stop further transactions.

"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 statement said.

The EFCC maintained that the action was taken in line with its statutory responsibility to safeguard public funds and should not be viewed as an attempt to influence the upcoming governorship election.

"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," it added.

The agency also disclosed that it is monitoring the financial activities of several other states as part of broader efforts to strengthen accountability and transparency in the management of public resources.

Reaffirming its commitment to impartiality, the EFCC insisted that it remains non-partisan and acts solely in the interest of Nigerians. It also urged the public to disregard what it described as misleading narratives intended to discredit its operations.

The allegations remain under investigation, and no court has determined liability in the matter.

Nigerian Bar Association React

However, the President of the Nigerian Bar Association (NBA), Afam Osigwe (SAN), has warned that any directive preventing a state government from accessing its bank accounts would cripple governance and amount to an abuse of power.

Osigwe acknowledged that the EFCC has the power to obtain a court order to freeze specific accounts suspected to be linked to fraudulent activities. However, he maintained that the commission has no legal authority to impose a blanket freeze on all accounts belonging to a state government.

“No government agency or individual has the power to prevent a state government from accessing its funds because such an action would effectively bring government activities to a halt,” he said. “If the EFCC believes a particular account is being used for fraud, it may seek a court order to freeze that account. What it cannot do is issue a blanket directive freezing all accounts belonging to a state.”