The Nigerian Bar Association has criticised the Economic and Financial Crimes Commission (EFCC) over its decision to place a post-no-debit restriction on Osun State Government’s statutory allocation account, arguing that the anti-graft agency lacks the constitutional authority to impose a blanket freeze on a state’s finances without judicial approval.
The EFCC had directed First Bank to halt withdrawals from the account as part of an investigation into the alleged diversion of about ₦11 billion in Ecology Funds, Intervention Funds and Federal Account Allocation Committee allocations.
In a statement, the commission said the restriction became necessary after investigators detected what it described as suspicious transfers from the account beginning on August 2.
According to the EFCC, the measure was intended to prevent further movement of funds while investigations continue, stressing that the action was based solely on its statutory mandate and was unrelated to the forthcoming Osun governorship election.
Reacting to the development, NBA President Afam Osigwe (SAN) maintained that while the EFCC could investigate alleged financial crimes and seek court orders to preserve specific accounts linked to suspected fraud, it could not lawfully freeze a state’s finances through a blanket directive.
He warned that such an action would effectively paralyse government operations, describing it as unconstitutional and an abuse of the commission’s powers. Osigwe added that any restriction on government accounts should be backed by a valid court order and urged financial institutions not to comply with directives that lack judicial authorisation.
The Osun State Government rejected the EFCC’s action and announced plans to challenge it at the Federal High Court.
Attorney-General and Commissioner for Justice, Oluwole Jimi-Bada, said the commission was free to investigate the state’s finances but had no legal basis to freeze government accounts without judicial authorisation.
