The Nigerian Bar Association (NBA) has criticised the Economic and Financial Crimes Commission (EFCC) over its reported freezing of the Osun State Government’s statutory allocation account, insisting that the anti-graft agency lacks the constitutional authority to impose a blanket restriction on a state’s finances without a valid court order.

The EFCC had directed First Bank to place a post-no-debit restriction on the Osun State Government’s statutory allocation account as part of an ongoing investigation into the alleged mismanagement of about N11 billion in Ecology Funds, Intervention Funds and Federation Account Allocation Committee (FAAC) allocations.

In a letter dated August 5, 2026, and signed by Assistant Commander of the EFCC, Adenike Babalola, for the Director of Investigation, the commission instructed the bank to prevent withdrawals from the account pending the conclusion of its investigation.

Defending the action, the EFCC said it was prompted by suspicious movement of funds detected from August 2 and insisted the restriction was aimed at safeguarding public resources rather than influencing the August 15 governorship election in Osun State.

However, NBA President, Afam Osigwe (SAN), described the reported directive as unconstitutional, warning that freezing a state’s account without due process could paralyse governance.

“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.

He acknowledged that the EFCC could obtain a court order to freeze specific accounts suspected to be linked to fraud but maintained that the commission could not lawfully freeze all accounts belonging to a state government.

“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.”

Osigwe added that any decision to freeze the account of an individual or government institution must be backed by sufficient legal grounds and judicial authorisation.

He also advised banks not to comply with any directive seeking to halt transactions across all state government accounts without the backing of a court order.

Other senior lawyers also questioned the legality of the EFCC’s action.

Senior Advocate of Nigeria, Adeyinka Olumide-Fusika, argued that Nigerian courts have consistently ruled that anti-graft agencies must obtain judicial authorisation before freezing bank accounts.

Similarly, Isiaka Olagunju (SAN) described the move as a violation of the 1999 Constitution and contrary to the principles of federalism, warning that restricting access to state funds could disrupt governance and hinder the delivery of public services.

However, Professor Damilola Olawuyi (SAN) defended the use of account freezing as a recognised anti-corruption tool, provided it is exercised within the limits of the law.

He cautioned that such powers should not be deployed for political purposes or used as a substitute for thorough investigations.

Also weighing in, Wolemi Esan (SAN) said the EFCC could lawfully impose a temporary stop order for up to 72 hours under Section 7(6) of the Money Laundering (Prevention and Prohibition) Act without first obtaining a court order.

He explained that any restriction beyond the statutory period must be backed by an interim freezing order issued by a competent court under Section 34 of the EFCC Act.

Meanwhile, civil society organisations and opposition political parties, including the African Democratic Congress (ADC), Labour Party (LP), Nigeria Democratic Congress (NDC), Social Democratic Party (SDP) and Young Progressives Party (YPP), condemned the reported account freeze, alleging that the action could undermine democratic governance ahead of the August 15 governorship election.

The ruling All Progressives Congress (APC), however, backed the EFCC, arguing that the commission should be allowed to carry out its statutory responsibilities without political interference.

The Osun State Government has vowed to challenge the account restriction in court, with Attorney General and Commissioner for Justice, Oluwole Jimi-Bada (SAN) insisting that while the EFCC has the power to investigate government finances, it cannot lawfully freeze state accounts without first obtaining a court order.