The Economic and Financial Crimes Commission (EFCC) has explained that the restriction placed on the Osun State Government’s statutory allocation account is part of an ongoing investigation being conducted by the anti-graft agency.
According to the commission, First Bank was directed to place a Post-No-Debit restriction on the account, preventing withdrawals and other debit transactions until the investigation is concluded.
The directive was contained in a letter dated August 5, 2026, signed by Assistant Commander of the EFCC, Adenike Babalola, on behalf of the commission’s Director of Investigation.
The letter, addressed to the Managing Director of First Bank with a copy to the bank’s Chief Compliance Officer, identified the affected account as the Osun State Government Statutory Allocation Account.
The EFCC disclosed that the latest directive followed an earlier correspondence sent to the bank on April 15, 2026, in connection with the same investigation.
Although the commission confirmed that the restriction was linked to an ongoing investigation, it did not disclose the specific allegations under review or identify any individuals connected to the probe.
The anti-graft agency stated that the action was taken in line with its statutory powers under Section 38(1) and (2) of the Economic and Financial Crimes Commission (Establishment) Act, 2004, and Section 24 of the Money Laundering (Prevention and Prohibition) Act, 2022.
Under a Post-No-Debit restriction, funds can still be paid into the account, but withdrawals, transfers and other debit transactions are prohibited until the restriction is lifted or varied by the appropriate authority.
The development comes amid a legal challenge by the Osun State Government, which has approached the Federal High Court to contest the freezing of its accounts, arguing that the action could disrupt governance and the delivery of essential public services.
