The Nigerian Bar Association (NBA) has criticised the Economic and Financial Crimes Commission (EFCC) over the reported freezing of the Osun State Government’s bank account, arguing that the anti-graft agency lacks the constitutional authority to impose a blanket restriction on a state’s finances without due legal process.
Speaking in an interview, NBA President Afam Osigwe (SAN) said while the EFCC may obtain a court order to freeze specific accounts linked to alleged fraud, it cannot lawfully freeze all accounts belonging to a state government.
“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. 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,” Osigwe said.
He described any such blanket restriction as unconstitutional and an abuse of power, adding that any decision to freeze the account of an individual or government institution must be supported by sufficient legal grounds and a valid court order.
Although Osigwe said he could not independently confirm whether the EFCC had indeed issued the directive, he advised banks not to comply with any instruction seeking to halt transactions across all state government accounts if such an order lacked proper legal backing.
The controversy followed reports that the EFCC directed First Bank to place a Post No Debit restriction on Osun State’s statutory allocation account as part of an investigation into the alleged fraudulent handling of about ₦11 billion in Ecology Funds, Intervention Funds and FAAC allocations. The commission said the restriction was prompted by suspicious movement of funds and insisted the action was not politically motivated despite the forthcoming Osun governorship election.
Several Senior Advocates of Nigeria also questioned the legality of the restriction. Adeyinka Olumide-Fusika (SAN) argued that Nigerian courts have consistently held that anti-graft agencies cannot freeze accounts without judicial authorisation, while Isiaka Olagunju (SAN) described the move as a serious constitutional infraction. However, Professor Damilola Olawuyi (SAN) defended account freezing as a recognised anti-corruption tool when exercised within the law, and Wolemi Esan (SAN) noted that the EFCC may impose a temporary stop order for up to 72 hours under the Money Laundering Act before seeking a court order for any longer restriction.
Meanwhile, Osun State Attorney General Oluwole Jimi-Bada confirmed that the state government had been directed by Governor Ademola Adeleke to challenge the EFCC’s action in court, insisting the commission cannot freeze government accounts without judicial approval.
The development has also drawn reactions from opposition parties, including the African Democratic Congress (ADC), Young Progressives Party (YPP), Social Democratic Party (SDP) and Labour Party (LP), many of which criticised the timing of the action and raised concerns about its implications ahead of the August 15 Osun governorship election. The All Progressives Congress (APC), however, defended the EFCC, saying the commission likely acted based on facts available to its investigators….see more