The Nigerian Bar Association (NBA) has argued that the Economic and Financial Crimes Commission (EFCC) has no legal authority to unilaterally freeze the bank accounts of the Osun State Government without first obtaining a court order.
The association said the anti-graft agency’s post-no-debit (PND) directive could cripple the operations of the state government.
The EFCC had instructed First Bank to place a restriction on withdrawals from the Osun State Government’s statutory allocation account as part of an ongoing investigation into the alleged fraudulent handling of N11 billion in ecological and intervention funds.
The directive was contained in a letter dated August 5, 2026, signed by Adenike Babalola, Assistant Commander of the EFCC, on behalf of the Director of Investigation.
Reacting to the development, Governor Ademola Adeleke accused federal authorities of undermining the rights of state governments, saying his administration would not accept actions that interfere with the constitutional autonomy of subnational governments.
He also alleged that his administration had faced a series of politically motivated actions, including the harassment of members of the Accord Party and attempts to disrupt the operations of local government councils in the state.
Defending its action, the EFCC said it had been investigating the Osun State Government since March over the alleged diversion and mismanagement of ecological and intervention funds.
According to the commission, investigators observed large transfers from the state government’s account into several corporate entities beginning on August 2, prompting the decision to freeze the account to prevent further movement of funds.
Speaking to Punch, the outgoing NBA President, Afam Osigwe, described the EFCC’s action as unconstitutional, insisting that the agency should have obtained a court order if it believed the account was being used for fraudulent activities.
“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.
“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 obtain the appropriate court order,” he added.