EFCC Reveals Reason Behind Osun Government Account Freeze

The Economic and Financial Crimes Commission (EFCC) has directed First Bank to restrict withdrawals from the Osun State Government’s statutory allocation account pending the conclusion of an ongoing investigation.

According to a letter dated August 5, 2026, and signed by Assistant Commander of the EFCC, Adenike Babalola, on behalf of the Director of Investigation, the commission instructed the bank to place a Post-No-Debit (PND) restriction on the account, preventing any withdrawals or transfers while the investigation continues.

The letter, referenced 3000/EFCC/ABJ/HQ/PFS/TA/OSUN/VOL.17/666, was addressed to the Managing Director of First Bank, with the bank’s Chief Compliance Officer copied. The affected account was identified as Osun State Government Statutory Allocation, account number 2017170947.

The EFCC stated that the latest directive followed an earlier communication sent to the bank on April 15, 2026, as part of the same investigation.

While confirming that the restriction is connected to an ongoing probe, the commission did not disclose the nature of the allegations under investigation or identify any individuals involved.

The anti-graft agency said the directive was issued under the powers granted to it by Section 38(1) and (2) of the EFCC (Establishment) Act, 2004, and Section 24 of the Money Laundering (Prevention and Prohibition) Act, 2022, which authorise it to request financial information and restrict transactions during investigations.

A Post-No-Debit order allows funds to be paid into an account but prevents withdrawals or transfers until the restriction is lifted by the relevant authority.