NBA: EFCC can’t freeze Osun accounts without court order
The Nigerian Bar Association (NBA) says the Economic and Financial Crimes Commission (EFCC) lacks the authority to independently freeze the bank accounts of the Osun state government.
The association said the post-no-debit (PND) directive issued by the anti-graft agency could disrupt the day-to-day operations of the state government.
BACKGROUND
The EFCC had instructed First Bank to stop withdrawals from Osun state’s statutory allocation account as part of an ongoing investigation.
The directive was contained in a letter dated August 5, 2026, signed by Adenike Babalola, assistant commander of the EFCC, on behalf of the agency’s director of investigation.
Responding to the development, Ademola Adeleke, governor of Osun, said his administration would not tolerate actions by federal agencies that undermine the constitutional rights of state governments.
Adeleke added that the state had come under what he described as coordinated attacks, including the alleged harassment of members of the Accord Party and attempts to hinder the activities of local government councils.
The EFCC defended its action, saying the account was frozen over the alleged fraudulent management of N11 billion in ecological and intervention funds.
According to the commission, it has been investigating the Osun government since March over the alleged misuse of the funds.
The agency also said it noticed large sums being transferred from the account to several corporate entities from August 2 while the investigation was ongoing.
‘COURT ORDER NEEDED’
Speaking in an interview with The Punch, Afam Osigwe, the outgoing NBA president, said the EFCC should have obtained a court order if it suspected that the state government’s account was being used for fraudulent activities.
Osigwe argued that the agency’s directive was unconstitutional and exceeded the powers granted to the EFCC.
“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.
“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 and 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 get a proper order.”
He also urged First Bank not to comply with the EFCC’s directive.
