Reported by: Oahimire Omone Precious | Edited by: Oravbiere Osayomore Promise.
The Nigerian Bar Association has strongly condemned the Economic and Financial Crimes Commission's decision to freeze the Osun State Government's statutory allocation account, describing the action as an abuse of power and a potentially unconstitutional move that could cripple governance in the state. The NBA President, Afam Osigwe, said the anti-graft agency could investigate suspicious transactions and seek court orders against specific accounts but lacked the authority to impose a blanket restriction on a state government's finances without following due legal process.
The EFCC had on Wednesday, August 5, 2026, directed First Bank to place a Post-No-Debit restriction on the Osun State Government Statutory Allocation account, pending the conclusion of an investigation into the alleged mismanagement of about N11 billion in Ecology Funds, Intervention Funds, and Federal Account Allocation Committee allocations. The directive was contained in a letter dated August 5, 2026, signed by an Assistant Commander of the commission, Adenike Babalola, on behalf of the Director of Investigation, and addressed to the Managing Director of First Bank. It identified the affected account as "Osun State Government Statutory Allocation," with account number 2017170947.
In a statement on Wednesday night, the EFCC said the action followed suspicious movement of funds from the state government's accounts into what it described as suspicious corporate accounts, detected from August 2, 2026. The commission said it had been investigating the state government since March 2026 over the alleged fraudulent handling of the funds, disclosing that some officials, particularly the state's Accountant-General, had been interviewed by its investigators. The EFCC insisted that its action was not politically motivated despite the timing ahead of the August 15 governorship election, stressing that it could not overlook financial infractions on account of the poll.
However, the NBA President, Afam Osigwe, in an interview with The PUNCH on Wednesday, warned that any directive restricting withdrawals from a government account without judicial oversight could amount to an abuse of power. Osigwe argued that the anti-graft agency lacks the constitutional power to impose a blanket restriction on a state's finances without due legal process, warning that such a move could cripple governance. He said the EFCC could investigate suspicious transactions and seek court orders against specific accounts, but it could not freeze an entire state government's account without following due legal process.
Several Senior Advocates of Nigeria also questioned the legality of the restriction, insisting that any account freeze beyond the statutory period must be backed by a court order. While some legal experts defended the EFCC's preventive powers under existing laws, they stressed that such powers must be exercised strictly within the law and not for political purposes. Meanwhile, opposition parties, including the ADC, LP, SDP, NDC and YPP, condemned the action, alleging it was aimed at weakening the Osun State Government ahead of the governorship election. The ruling APC, however, backed the EFCC, insisting the commission should be allowed to carry out its statutory responsibilities without interference.
Osun State Governor Ademola Adeleke has directed the state's Attorney General to challenge the account freeze in court, maintaining that the EFCC cannot lawfully freeze government accounts without obtaining a court order first. The ADC described the action as an act of terrorism, while the NBA dismissed it as an abuse of power. The EFCC, in its statement, urged Nigerians to disregard what it called false narratives and deliberate demonization of the works of the commission, stating that the interests of all Nigerians are greater and will always be protected by the commission.
The development comes just ten days before the Osun State governorship election, fuelling political tensions and raising questions about the independence of the anti-graft agency. The NBA's intervention has added significant legal weight to the opposition against the EFCC's action, and the case is now expected to be tested in court. For now, the people of Osun State and the wider Nigerian public await the outcome of the legal battle, as the EFCC maintains that its action was a necessary measure to protect public funds from being looted.
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