THE LEGALITY OF THE EFCC’S FREEZING OF THE OSUN STATE GOVERNMENT’S ACCOUNT WITH FIRST BANK

 

Yesterday, 5 August 2026, ten days before the Osun State governorship election, the EFCC directed First Bank to place a Post-No-Debit restriction on the Osun State Government’s Statutory Allocation Account (used for salaries, among other expenses).

Governor Ademola Adeleke protested that the action lacks a court order and violates sub-national autonomy. The EFCC maintains the move stems from an ongoing investigation into the alleged mismanagement of ₦11 billion in public funds following suspicious movements, denying political motivation.

As Nigerians take sides along the familiar fault lines of politics and sentiment, it is necessary to state, dispassionately, what the law actually says

As a general rule, the EFCC has no open-ended power to freeze bank accounts unilaterally.

Property rights under Section 44 of the 1999 Constitution (as amended) mandate judicial authorization—typically an interim forfeiture order from the Federal High Court—to restrict an account beyond a temporary administrative window.

Unsupervised power to freeze accounts at will does not exist in law.

However, Section 7(6) of the Money Laundering (Prevention and Prohibition) Act, 2022 (MLPPA) creates a narrow exception: the EFCC may direct a financial institution to place a temporary administrative freeze on an account for up to 72 hours while applying for a court order.

This 72-hour freeze is lawful without a prior court order to prevent the dissipation of funds. If the EFCC fails to secure a valid court order within that 72-hour window, the statutory basis expires, the bank must lift the restriction, and any continued freeze becomes an illegal restraint on property.

Beyond the strict legal analysis, however, context matters. This action falls in a season of unusually high political temperature, ten days to a closely watched governorship election in Osun State, when trust between institutions and the citizenry is thin and every act by a federal agency against a state under opposition control will inevitably be read, rightly or wrongly, through a political lens.

Whether or not that reading is fair, it is a reality that responsible stakeholders, the EFCC, the Osun State Government, the banks involved, the courts, and indeed the Bar, must reckon with.

The law must be followed to the letter, without regard to whose government is affected or whose political fortunes are helped or hurt, and every actor should insist on strict compliance with the 72-hour limit and the requirement of a valid court order thereafter.

But precisely because the atmosphere is fragile and the stakes so high, this is a moment for extreme institutional discipline and restraint rather than brinkmanship on any side.

Anything capable of unsettling the delicate peace of an election period carries consequences well beyond the immediate dispute, and all stakeholders would do well to let the law, applied faithfully and transparently, rather than sentiment or strategy, to determine the outcome.

By Abdulkareem Azeez, Esq.

Chairman, NBA Ikirun Branch