By Ayodele Quadri, Lagos Times Correspondent
ABUJA, NIGERIA — The Economic and Financial Crimes Commission (EFCC) has defended its decision to restrict the statutory allocation account of the Osun State Government, maintaining that anti-graft legislation empowers the agency to place a temporary 72-hour stop order on accounts under active investigation without prior court authorization.
The clarification follows a legal row and executive protests by the Osun State Government over a Post No Debit (PND) directive issued to First Bank on August 5, 2026, regarding an investigation into the alleged fraudulent handling of ₦11 billion in Ecology Funds, Intervention Funds, and Federation Account Allocation Committee (FAAC) transfers.
Key Operational Highlights
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Statutory Stop Order: The commission relied on Section 7(6) of the Money Laundering (Prevention and Prohibition) Act, 2022, and Section 38 of the EFCC Establishment Act, which permit a temporary 72-hour freeze during active financial crime investigations.
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Judicial Authorization Requirement: Senior legal experts and judicial precedents (EFCC v. Attorney-General of Benue State) note that while the commission can initiate a 72-hour temporary hold, any restriction extending beyond 72 hours strictly requires a formal court order under Section 34 of the EFCC Act.
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Contested Outflows: The EFCC stated the emergency restriction was triggered after detecting “precipitate and unwarranted movement of funds” from state treasury accounts to suspicious accounts starting August 2, 2026.
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Bar Association & Legal Scrutiny: Senior Advocates of Nigeria (SANs) and legal commentators emphasized that prolonged freezing of subnational public accounts without judicial oversight raises serious administrative and constitutional concerns.
┌────────────────────────────────────────────────────────────────────────┐
│ EFCC 72-HOUR ACCOUNT FREEZE LEGAL MATRIX │
├────────────────────────────────────────────────────────────────────────┤
│ • Targeted Institution: Osun State Government Statutory Account │
│ │
│ • Statutory Basis : Section 7(6) Money Laundering Act, 2022 & │
│ Section 38 EFCC Establishment Act, 2004 │
│ │
│ • Initial Window : 72 Hours (Temporary stop order without court) │
│ │
│ • Extension Threshold : Section 34 Court Order required beyond 72 hrs │
│ │
│ • Core Dispute : Alleged ₦11bn Ecological/FAAC fund movement │
│ vs Subnational financial & civil operational │
│ autonomy │
└────────────────────────────────────────────────────────────────────────┘“72-Hour Statutory Powers Do Not Require Prior Court Order”
“If the directive was intended to operate as a stop order for a period not exceeding 72 hours under Section 7(6) of the Money Laundering Act, a prior court order was not required. However, if the EFCC intended the restriction to continue beyond the statutory 72-hour period, it ought to obtain an interim freezing order under Section 34 of the EFCC Act.” — Wolemi Esan, Senior Advocate of Nigeria
“The EFCC undoubtedly possesses broad investigative powers, but those powers must be exercised within statutory and constitutional limits. The restriction of a state government’s statutory allocation account without judicial authorisation raises serious constitutional and administrative law questions, particularly because the funds are intended for the discharge of governmental responsibilities.” — Yinka Oyesomi, Legal Practitioner
