Photo collage showing Osun governor Adeleke and EFCC logo. Photo Source: Peoples Gazette.
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On Wednesday, Aug. 5, 2026, news circulated that the Economic and Financial Crimes Commission (EFCC), Nigeria’s anti-graft watchdog, has frozen an account belonging to the Osun state government.
The move, which quickly caused political tension in the Southwest region and came just 10 days before the gubernatorial polls in the state, drew public attacks.
The affected First Bank account, reportedly used for official financial transactions such as salary payments, was placed on ‘Post No Debit (PND)’ status. This prevents withdrawals and other debit transactions from the account.
Explaining the rationale behind it, Dele Oyewale, the EFCC’s spokesperson, noted that the anti-graft agency took the decision as part of an investigation into the finances of the state government. The investigation, it said, has been ongoing since March 2026 and it borders on the alleged fraudulent handling of ecology funds, intervention funds and the Federal Account Allocation Committee (FAAC) allocations totalling about N11 billion.
“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,” parts of the statement from the EFCC read.
In a counter-claim, Ademola Adeleke, the incumbent state governor, described the move as politically motivated rather than a case of financial mismanagement. He accused Gbenga Oyetola, the ex-Osun governor, of being behind the freezing order to stop his government from paying palliatives to civil servants in the state.
Oluwole Jimi-Bada, the commissioner for justice in Osun, also opined that the EFCC lacked the constitutional authority to take such action without due process, saying that it was illegal.
As part of DUBAWA’s Media and Information Literacy (MIL) project, this article provides the facts around the controversy trailing the political narratives online as a result of the situation.
Can EFCC freeze a state Government’s Account?
DUBAWA reviewed the provisions of the Money Laundering (Prevention and Prohibition) Act 2022 and found that Section seven gave EFCC or the Nigerian Financial Intelligence Unit (NFIU) the power to place a restriction on suspicious accounts or those linked to unlawful activities. The section deals with handling, reporting, and temporary-limit powers for suspicious financial transactions.
Checking further, we also saw that a paragraph in this section states that such a freeze must under no circumstance extend beyond 72 hours (that is, 3 days). This is the position of the court in the case of EFCC v. AG Benue State, saying EFCC can do so even without a court order, but it must not exceed the time limit.
A review of the EFCC (Establishment) Act 2004 also reveals that the law contains a similar provision. The provision states that the power could only be exercised reasonably after the commission has obtained a court order to back it before it can apply to a bank to commence the action.
This move by EFCC is not an isolated case. For instance, in August 2018, the commission placed a restriction on the bank accounts of Benue State government, stopping the processing of funds meant to pay the salaries of workers and pensioners in the state.
In the same year, it also surprisingly froze all the operational bank accounts belonging to the Akwa Ibom State government, blocking access to state funds.
To pursue this statutory power within the ambit of the law, DUBAWA found that the government’s agency has some processes to follow. For instance, the EFCC must have an ongoing scrutiny into economic or financial crimes involving the targeted funds or account of a state government before it.
After this, its legal team needs to file a motion ex parte application alongside a supporting affidavit at the court. This application gives the law enforcement agency an opportunity to get a hearing with the judge without notifying the account owner beforehand, preventing the suspect from quickly liquidating or moving the funds.
After this is done, the court will review the facts and evidence, and if satisfied that the funds are likely to be proceeds of crime, it may issue a freezing order. The order, which comes with a time-limit, begins to allow the agency to conclude its investigation. Next, the commission must serve the official certified court order directly to the compliance department of the bank or its manager, who will take action without delay.
If a court order is not obtained before the bank jumps into action solely due to EFCC’s directive, such a bank may face the wrath of the law as it could be sued for violating a duty of care owed to its clients and breach of contract.
The courts have maintained this position in the cases of Adetokunbo Odutola v. Diamond Bank Plc (2019) and Paulyn v. Zenith Bank Plc (2025).
What Now?
Reacting to the developments, President Bola Tinubu ordered an immediate lifting of the said account, describing the conduct of the EFCC as embarrassing because actions taken by it or other agencies are usually blamed on him as the leader of the nation.
The president said a look at the timing of the order will establish that it raises concerns that can erode public confidence in his government, as the people of Osun state will soon go to the polls to elect a new governor.
“I am duty-bound to issue a directive on this issue in consonance with the overriding public interest in preserving public confidence and the integrity, credibility, and fairness of our democratic process,” he said in a statement on Thursday.
Conclusion
The EFCC has statutory backing to order restrictions to be placed on the accounts of state governments in Nigeria, as seen in the Acts and court cases examined for this article. However, for such an order to be valid, it must be lawfully exercised.
While the law enforcement agency can act lawfully within 72 hours, a bank carrying out the instruction must also ensure that the agency follows due process of law before allowing the order.
