Metro
Why EFCC Cannot Freeze Osun Government Account — NBA

The Nigerian Bar Association (NBA) has faulted the decision of the Economic and Financial Crimes Commission (EFCC) to place a post-no-debit (PND) order on the Osun State Government’s bank account, insisting that the anti-graft agency lacks the power to unilaterally restrict access to state funds. The association warned that the……
The Nigerian Bar Association (NBA) has faulted the decision of the Economic and Financial Crimes Commission (EFCC) to place a post-no-debit (PND) order on the Osun State Government’s bank account, insisting that the anti-graft agency lacks the power to unilaterally restrict access to state funds.
The association warned that the directive could disrupt the operations of the state government, arguing that any attempt to freeze government accounts must be backed by a court order.
The EFCC had directed First Bank Plc not to permit withdrawals from the Osun State Government’s statutory allocation account as part of an ongoing investigation into the alleged mismanagement of N11 billion ecological and intervention funds.
The directive, contained in a letter dated August 5, 2026, was signed by Adenike Babalola, Assistant Commander of the EFCC, on behalf of the agency’s Director of Investigation.
READ ALSO: EFCC Defends Osun Account Restriction, Says Court Order Not Required
Reacting to the development, Osun State Governor Ademola Adeleke accused federal agencies of attempting to undermine the rights of subnational governments, saying the state would resist any move capable of paralysing its operations.
Adeleke alleged that the state had been subjected to a series of politically motivated attacks, including alleged harassment of Accord Party members and attempts to disrupt the activities of local government areas.
The EFCC, however, defended its action, saying the restriction was part of its investigation into alleged fraudulent handling of the funds by the Osun State Government.
The commission said it had been investigating the matter since March and claimed that during the probe, it noticed significant transfers from the account to various corporate entities from August 2.
Reacting to the development, the outgoing NBA President, Afam Osigwe, in an exclusive interview with The Punch said the EFCC should have approached a court for an order if it believed the account was being used for fraudulent activities.
Osigwe described the directive as unconstitutional, arguing that restricting withdrawals from a state government account could affect the delivery of public services.
“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,” he said.
He 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.”
According to him, such an action would amount to an abuse of power and a violation of the commission’s statutory authority.
“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,” Osigwe said.
He stressed that any decision to restrict access to government or private funds must follow due process.
“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 said.
The NBA president also urged First Bank not to comply with the EFCC directive without the backing of a valid court order.

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