By Faith Chondol
The Nigerian Bar Association (NBA) has declared that the EFCC lacks unilateral powers to freeze Osun State government accounts without a court order.
The NBA’s position followed an August 5, 2026 directive by the Economic and Financial Crimes Commission (EFCC) to First Bank restricting withdrawals from the Osun government’s statutory allocation account.
The EFCC issued the directive as part of an investigation into the alleged fraudulent handling of about N11 billion in ecological and intervention funds by the state government.
The anti-graft agency, in a letter signed by Adenike Babalola, Assistant Commander of the EFCC, on behalf of the Director of Investigation, ordered the bank to place a post-no-debit restriction on the account.
The EFCC said its investigation into the alleged handling of the funds had been ongoing since March 2026.
According to the agency, investigators observed that substantial transfers were being made from the account to various corporate entities from August 2, prompting the restriction.
Osun State Governor, Ademola Adeleke, criticised the move, saying the state would not accept actions by federal agencies that undermine the constitutional rights and operations of subnational governments.
Adeleke also alleged that the state had recently faced several sponsored attacks, including alleged harassment of members of the Accord Party and efforts to disrupt the operations of local government areas.
However, the outgoing NBA President, Afam Osigwe, said the EFCC should have obtained a court order if it believed the account was connected to fraudulent activities.
Speaking to Newsmen, Osigwe described the EFCC’s directive as unconstitutional and potentially an abuse of the agency’s powers.
He argued that restricting withdrawals from a state government account could effectively paralyse the operations of the government and affect its ability to discharge its statutory 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.
He maintained that while the EFCC could seek judicial authorisation to freeze an account linked to alleged fraud, it could not issue a blanket directive targeting a state government without proper legal backing.
“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,” he said.
Osigwe urged the bank to resist the EFCC directive, insisting that any restriction on a government account must be based on a proper legal process and a valid court order.
The development has heightened tensions between the Osun State Government and the EFCC as investigations into the alleged N11 billion funds controversy continue.
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