The Nigerian Bar Association and several opposition parties have criticised the Economic and Financial Crimes Commission over its decision to freeze Osun State Government’s statutory allocation account, describing the move as unconstitutional and politically contentious.
The EFCC had directed First Bank to place a post-no-debit restriction on the 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.
According to the anti-graft agency, the restriction became necessary after investigators detected what it described as suspicious transfers of large sums of money from the account into several corporate entities beginning August 2, 2026.
The commission maintained that the action was not politically motivated despite coming days before the August 15 governorship election in Osun State.
It 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 are being moved.”
The EFCC added that it remained committed to protecting public funds, stressing that the existence of an election could not prevent it from carrying out its statutory responsibilities.
Reacting, NBA President Afam Osigwe (SAN) argued that the commission lacked the constitutional authority to impose a blanket restriction on a state’s finances without due legal process.
He said, “No government agency has the power to restrict withdrawals from the account of any state because such an order has the effect of grounding the activities of government. If the EFCC suspects fraud in a particular account, it should obtain a court order, but it cannot make a blanket order freezing the accounts of a state.”
Osigwe warned that such action could amount to an abuse of power and advised banks not to comply with any directive that unlawfully restricts a state’s accounts.
Senior Advocate of Nigeria Adeyinka Olumide-Fusika also questioned the legality of the restriction, insisting that the EFCC must obtain judicial authorisation before freezing any account.
He said Nigerian courts had consistently ruled that anti-graft agencies could not freeze accounts without a court order.
Another senior lawyer, Isiaka Olagunju (SAN), described the action as a violation of the Constitution, arguing that restricting access to state funds could cripple governance and prevent the government from fulfilling its constitutional responsibilities.
However, Professor Damilola Olawuyi (SAN) defended account freezing as a recognised preventive tool against financial crimes, provided it is exercised within the limits of the law.
He cautioned that such powers should not be used for political purposes or as a substitute for proper investigations.
Also weighing in, Wolemi Esan (SAN) explained that the EFCC could issue a temporary stop order for up to 72 hours under the Money Laundering (Prevention and Prohibition) Act without first obtaining a court order, but said any restriction beyond that period must receive judicial approval.
Civil society groups also expressed mixed reactions.
Executive Director of the Civil Society Legislative Advocacy Centre, Auwal Musa Rafsanjani, advised the Osun State Government to seek legal redress if it believed the restriction was unlawful.
Similarly, the Chairman of the Centre for Anti-Corruption and Open Leadership, Debo Adeniran, said the EFCC would only be justified if its action was based on credible evidence rather than political considerations.
The Executive Director of the Peering Advocacy and Advancement Centre in Africa, Ezenwa Nwagwu, urged the public not to jump to conclusions, saying there might be circumstances that justified the commission’s action.
Meanwhile, opposition parties, including the African Democratic Congress, Labour Party, Nigeria Democratic Congress, Social Democratic Party and Young Progressives Party, condemned the restriction, accusing the Federal Government of using state institutions to weaken the Osun administration ahead of the governorship election.
The ruling All Progressives Congress, however, defended the EFCC, insisting that anti-corruption agencies should be allowed to investigate allegations of financial misconduct without political interference.
