The Nigerian Bar Association (NBA) says the Economic and Financial Crimes Commission (EFCC) has no power to unilaterally freeze the bank accounts of the Osun state government.
The body said the EFCC’s post-no-debit (PND) order has the
capacity to stall the operations of the Osun government.
BACKGROUND
The anti-graft agency had directed First Bank not to allow
withdrawals from the Osun state government’s statutory allocation account as
part of an ongoing investigation.
EFCC’S directive to the bank was conveyed in a letter dated
August 5, 2026, and signed by Adenike Babalola, assistant commander of the EFCC
on behalf of the director of investigation.
Reacting to the development, Ademola Adeleke, Osun governor,
said the state government will not accept a situation in which federal
government agencies trample on the rights of subnational governments.
Adeleke said the Osun government has been witnessing
numerous sponsored attacks, including the harassment of Accord party members,
and the move to stall the operations of LGAs in the state.
Defending its decision, the agency said it froze the bank
account of the Osun state government over alleged fraudulent handling of N11
billion ecological and intervention funds.
EFCC said it has been investigating the Osun state
government since March regarding the alleged mishandling of the funds.
The agency said amid the probe, it observed that huge
transfer of funds was being made from the account into different corporate
entities since August 2.
‘COURT ORDER NEEDED’
Speaking in an interview with The Punch, Afam Osigwe, the
outgoing NBA president, said the anti-graft agency could have secured a court
order if it believes that an account of the state government is being used for
fraud.
Osigwe said the EFCC order is unconstitutional and violates
the powers of the anti-graft agency.
“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,”
Osigwe said
“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.
“Such an order would be unconstitutional and also violate
the powers of the EFCC and may actually amount to an abuse of power. We should
not have such a situation.
“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 urged the bank not to comply with the directive of the
anti-graft agency.
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