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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