…Restricting state funds could affect millions of residents, experts warn
The freezing of Osun State Government accounts by the Economic and Financial Crimes Commission (EFCC) has sparked debate among legal practitioners over the extent of the anti-graft agency’s powers, the protection of State autonomy under Nigeria’s federal structure, and the economic implications of restricting access to government funds.
The Osun State Government has indicated plans to challenge the action in court.
Legal practitioners, who spoke with BusinessDay, offered different perspectives on the legal issues but agreed that the courts are the appropriate forum to determine the dispute.
Dayo Akinlaja (SAN), a lawyer and former Attorney-General and Commissioner for Justice in Ekiti State, said the matter should be resolved through the courts rather than public debate.
Akinlaja said the State Government has the right to approach the court if it believes the EFCC acted improperly.
According to him, if the EFCC obtained a court order before freezing the accounts, the state government could return to the same court to seek an order setting it aside.
“If it obtained a court order, it is open to the state government to apply for it to be set aside for whatever reasons they want to present,” he said.
He added that if no court order was obtained before the accounts were frozen, the state could still seek legal redress.
Akinlaja, however, said the EFCC could not freeze government accounts without following due process.
“I do not think that they have the right to just freeze the accounts without a court order,” he said, adding that he believed a bank would ordinarily require proper legal authority before restricting access to such accounts”, he submitted.
On whether a federal agency such as the EFCC can take action against a State Government, Akinlaja said the law allows institutions to institute legal proceedings against individuals, governments and public bodies where there are valid grounds.
He maintained that the EFCC has the right to seek legal intervention, while the affected state also has the right to challenge such action.
Realwan Okpanachi, a legal practitioner and member of the African Democratic Congress (ADC), took a different view, describing the account freeze as an example of what he considers a disregard for the economic consequences of government actions.
Okpanachi argued that freezing the accounts of a State Government goes beyond an investigation because it affects residents who depend on government services.
He questioned the basis for restricting access to State funds, saying investigations should not be conducted in a way that disrupts salary payments, contracts and public services.
According to him, a State Government account differs from a private individual’s account because it funds salaries, healthcare, education and infrastructure.
“The government has been grounded. Salaries may not be paid. Contractors may not be paid. Normal government obligations may not be satisfied,” he said.
Okpanachi argued that freezing accounts should not become a routine tool for fighting corruption where the consequences affect citizens.
He also questioned the timing of the action, linking it to the political climate in Osun State.
The lawyer alleged that the development could be politically motivated because of its proximity to the election and the political differences between the state and federal governments.
“It is obviously political,” he said, adding that he believed the action was unconstitutional and unlawful”, Okpanachi noted.
Okpanachi advised the Osun State Government to challenge the action in court, describing the judiciary as the appropriate institution to determine the dispute.
Solomon Apenja, an Abuja-based legal practitioner, also questioned whether the EFCC has the constitutional authority to freeze the accounts of an entire state government.
Apenja argued that Nigeria’s federal structure recognises States as constituent units of the federation and that federal institutions should not interfere unduly in State affairs.
He said freezing State accounts affects not only elected officials but also civil servants, contractors, teachers, healthcare workers and residents who rely on public services.
“When you freeze the accounts of a state, you are not only interfering in the affairs of the state government, you are also affecting the ability of the state to pay salaries and deliver services,” he said.
He referred to previous legal disputes in which the powers of the EFCC over state finances were challenged, saying courts had, in some instances, drawn a distinction between investigating individuals and interfering in the finances of a state government.
Apenja added that the judiciary remains the only institution that can determine whether the EFCC acted within its powers.
Beyond the legal arguments, the lawyers said disputes involving public funds have wider implications because they directly affect citizens who depend on government services.
The legal challenge by the Osun State government is expected to test the limits of the EFCC’s enforcement powers, the constitutional relationship between federal agencies and state governments, and the scope of state autonomy under Nigeria’s federal system.
Comments
Start the conversation about this story.