The Economic and Financial Crimes Commission (EFCC) has lifted the restriction placed on an Osun State Government account following a dispute over the agency’s decision to block transactions on the account shortly before the state’s 2026 governorship election.
Reports indicate that the affected account became operational again after a directive from President Bola Ahmed Tinubu for the restriction to be reversed.
The development brings a temporary end to a dispute that had escalated between the anti-graft agency and the Osun State Government over the legality and motivation behind the restriction.
How the dispute began
The EFCC placed a Post-No-Debit restriction on an Osun State Government account in early August, days before the August 15 governorship election.
The commission subsequently explained that it had been investigating the state’s finances since March 2026 over alleged irregularities involving approximately ₦11 billion in Ecology Funds, Intervention Funds and allocations from the Federation Account Allocation Committee (FAAC).
The agency said some state officials, including the Accountant General, had already been questioned by investigators.
According to the EFCC, the investigation alone did not prompt the restriction.
The commission said it became necessary after investigators allegedly detected significant movements of funds from the account into different corporate entities beginning on August 2.
The EFCC said it acted to prevent what it described as suspicious transfers and to safeguard public resources.
Adeleke challenged the restriction
Governor Ademola Adeleke rejected the EFCC’s action and questioned the legality of restricting the state government’s account without a prior court order.
He subsequently directed the state Attorney-General to challenge the action at the Federal High Court in Osogbo.
The state government also rejected the EFCC’s allegation of suspicious handling of about ₦11 billion, describing the agency’s claims as unfounded and politically motivated.
The EFCC, however, defended its authority to impose a temporary restriction.
Its Director of Public Affairs, Wilson Uwujaren, said the commission could temporarily restrict an account when it identified suspicious activity, explaining that the measure could remain in place for up to 72 hours before a court order would be required if the restriction needed to continue.
He also stressed that the action was targeted at one account and did not amount to a blanket shutdown of Osun State’s finances.
Restriction eventually lifted
The latest development is that the affected account has now reportedly been released following a presidential directive.
Presidential aide Temitope Ajayi confirmed that the restriction had been lifted, while an aide to Governor Adeleke also confirmed that the account was functional again.
The development prompted the Osun State Government to move towards withdrawing its legal challenge against the EFCC.
The lifting of the restriction, however, does not automatically mean that the underlying EFCC investigation has been concluded or that the allegations against the state government have been established or dismissed.
The commission had said its investigation into the alleged handling of the funds was ongoing.
Consequently, the removal of the account restriction and the separate investigation into the alleged financial irregularities should be treated as two distinct developments.
For now, the immediate banking restriction has been removed, while questions surrounding the alleged ₦11 billion financial transactions remain part of the broader investigation.