First Bank Under Pressure To Unfreeze Osun Govt Account

Nigeria’s premier commercial bank, First Bank Limited, FBNL  is currently under serious pressure to unfreeze the Post No Debit, PND imposed on the account of the Osun State Government, acting on the order of the Economic and Financial Crimes Commission, EFCC.

The anti-graft agency ordered the account to be frozen in a letter it wrote to the Managing Director of First Bank, Olusegun Alebiosu, dated April 15, 2026. It said it took the action after discovering suspicious movement of funds from the account.

Speaking on Arise Television on Thursday, EFCC spokesperson  Wilson Uwujaren defended the agency’s action, saying it acted in the public interest after investigations indicated that over N18 billion was moved out of the account in the last few days. He noted that Sections 38(1) and 38(2) of the EFCC Act, 2004, and Section 24 of the Money Laundering Act empower the commission to freeze any account for 72 hours once financial impropriety has been discovered.

The agency claimed it was trying to prevent the N11 billion left in the said account from being looted.

In spite of the EFCC’s defence, analysts insist that the commission still requires a court order to freeze the account, even when it has discovered fraudulent or unlawful practices.

“The EFCC cannot act arbitrarily on issues that affect a sub-national government as if it is almighty. It is a simple matter of law that before you can place a PND on any customer’s account—including that of an individual, government or organisation—it has to be backed by a court order. A court must issue an order to that effect to avoid any liability,” a legal practitioner said on Thursday.

The remarks come on the heels of the condemnation by the Nigerian Bar Association, NBA which said the EFCC may have carried out an illegal act by freezing the account without a court order.

Reacting to the issue, NBA President Afam Osigwe, a Senior Advocate of Nigeria, SAN said the anti-graft agency could have secured a court order once it discovered that the state government’s account was allegedly being used for fraud.

According to Osigwe, the EFCC’s order is unconstitutional and exceeds the agency’s powers. He said the action has placed the state government under serious pressure because it may find it difficult to carry out its constitutional responsibilities.

“No government agency or any person has the right or the power to restrict withdrawals from the account of any state because, first of all, the order has the effect of grounding the activities of a government,” Osigwe said.

The NBA President added: “If the EFCC knows that any particular account is being used for the purpose of fraud, it may be able to obtain a court order, but it cannot make a blanket order freezing the accounts of any state.

“Such an order would be unconstitutional and also violate the powers of the EFCC. It may actually amount to an abuse of power. We should not have such a situation.

“If there is a need to freeze the account of a person or government, there is a need to provide a proper basis for it and obtain a proper court order.”

The EFCC’s action has also received sharp criticism from the African Democratic Congress, ADC which described the freezing of the state’s bank account as “political terrorism,” alleging that the commission is trying to financially strangulate the state government.

A former Chairman of the National Human Rights Commission, NHRC Prof. Chidi Odinkalu said the EFCC has acted unlawfully by freezing the bank account through a mere administrative directive. described

“EFCC needs a court order to do that, sir. It cannot be done lawfully as an administrative act,” Odinkalu, a lawyer said.

The public outrage against the EFCC comes amid the state government’s revelation that it has dragged the EFCC and First Bank to court over the matter, contending that the agency’s action is unconstitutional and a violation of due process.

Meanwhile, financial experts insist that the commercial bank may have erred by complying with the EFCC’s directive without a valid court order, saying the lender could share in any liability if the action is eventually declared unlawful.

“The bank appears to have acted on the EFCC’s order, but that does not make it legal. As a corporate organisation, the first thing the bank should have done was ask for a court order authorising the EFCC to carry out the action. That would show that the bank is acting responsibly and not on the whims and caprices of those in government,” financial expert Adebakin Emmanuel said.

He added: “First Bank appears to have acted as a tool of the Federal Government and has inadvertently taken sides in the murky waters of politics currently playing out in Osun State after deciding to implement the EFCC’s order without asking for a court order.

“Business and politics are separate issues. I think those in the bank are wise enough to understand this, unless they want to tell Nigerians that they are now part of the ruling government.”