The Nigerian Bar Association has challenged the Economic and Financial Crimes Commission over its decision to freeze Osun State Government’s statutory allocation account, arguing that the anti-graft agency lacks the constitutional authority to impose a blanket restriction on a state’s finances without a valid court order.
The controversy follows the EFCC’s move to place a post-no-debit restriction on Osun State’s statutory allocation account as part of an ongoing investigation into the alleged mismanagement of about ₦11 billion in Ecology Funds, Intervention Funds and Federal Account Allocation Committee allocations.
In a letter dated Aug. 5, 2026, and signed by Assistant Commander of the EFCC, Adenike Babalola, on behalf of the Director of Investigation, the commission instructed First Bank to halt withdrawals from the account pending the conclusion of its investigation.
The affected account, identified as the Osun State Government Statutory Allocation Account, reportedly came under scrutiny after the EFCC detected what it described as suspicious fund movements.
Defending its action on Wednesday, the anti-graft agency said it had been investigating the Osun State Government since March 2026 over allegations of fraudulent handling of public funds.
In a statement signed by its Head of Media and Publicity, Dele Oyewale, the commission said investigators had questioned several state officials, including the Accountant-General.
According to the EFCC, it imposed the restriction after discovering what it described as unusual transfers of large sums of money into multiple corporate accounts beginning August 2.
“These ongoing investigations of the state government would not have warranted any placement of a post-no-debit order on its account but for the precipitate and unwarranted movement of funds from the accounts to different suspicious accounts since Aug. 2, 2026,” the commission said.
“The Commission noticed huge transfers of funds into different corporate entities and had to swiftly halt the trend by freezing the accounts from which such heavy funds were being moved.”
The agency insisted that the decision was not politically motivated despite coming days before the Aug. 15 governorship election in Osun State.
While acknowledging the timing of the election, the EFCC maintained that it could not ignore alleged financial irregularities because of the political calendar.
“The Commission cannot watch idly while a state government’s account is being pillaged,” the statement said. “While the Commission is fully aware of the impending governorship election in Osun State, it has a responsibility to act in defence of the sanctity of the funds of the state.”
The commission also disclosed that Osun is one of several states currently under investigation as part of broader efforts to promote accountability in the management of public resources.
However, NBA President Afam Osigwe, SAN, faulted the move, warning that any attempt to freeze a state government’s account without due legal process amounts to an abuse of power.
Speaking in an interview, Osigwe said the EFCC may obtain a court order against specific accounts linked to suspected fraud, but it cannot lawfully impose a blanket restriction on a state’s finances.
“No government agency or any person has the right or power to restrict withdrawals from the account of any state because such an order has the effect of grounding the activities of a government,” he said.
“If the EFCC knows that any particular account is being used for fraud, it may be able to obtain a court order. But it cannot make a blanket order freezing the accounts of any state.”
Osigwe described such a move as unconstitutional and beyond the statutory powers of the commission.
“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,” he said.
The NBA president stressed that any decision to freeze the account of an individual, corporate entity or government institution must be backed by sufficient legal grounds and a valid court order.
“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 added.
Although he said he had not personally reviewed the EFCC directive, Osigwe urged financial institutions to be cautious about complying with any instruction that seeks to halt transactions across all state government accounts.
Similarly, Senior Advocate of Nigeria Adeyinka Olumide-Fusika questioned the legality of the restriction, arguing that the EFCC must first secure a court order before freezing any account.
