The Nigerian Bar Association (NBA) has faulted the Economic and Financial Crimes Commission (EFCC) over its directive to freeze the bank account of the Osun State Government, arguing that the anti-graft agency lacks the legal authority to impose such restrictions without obtaining a court order.
The NBA warned that the Post-No-Debit (PND) directive issued by the EFCC could significantly disrupt the operations of the state government if enforced.
The controversy follows a directive by the EFCC instructing First Bank to halt withdrawals from Osun State's statutory allocation account as part of an ongoing investigation into the alleged misuse of public funds.
The directive was contained in a letter dated August 5, 2026, and signed by Adenike Babalola, an Assistant Commander of the EFCC, on behalf of the agency's Director of Investigation.
Reacting to the development, Osun State Governor Ademola Adeleke condemned the action, accusing federal agencies of undermining the constitutional rights of subnational governments.
Defending its decision, the EFCC said the account was frozen as part of an investigation into the alleged fraudulent handling of about ₦11 billion in ecological and intervention funds.
According to the commission, investigations into the matter began in March 2026. The agency claimed it observed large transfers from the account to several corporate entities beginning on August 2, prompting the decision to restrict withdrawals pending the outcome of its investigation.
Speaking in an interview, outgoing NBA President Afam Osigwe argued that while the EFCC has the authority to investigate suspected financial crimes, it cannot unilaterally freeze a state's bank account without judicial approval.
According to him, where there is credible evidence that an account is being used to facilitate fraud, the appropriate legal procedure is for the anti-graft agency to obtain a court order authorising such action.
Osigwe described the EFCC's directive as unconstitutional, warning that freezing a state government's account without due process could paralyse governance and exceed the commission's statutory powers.
He maintained that any decision to freeze the account of an individual, organisation or government must be supported by a valid legal basis and authorised by a competent court.
The senior lawyer also urged the bank to act in accordance with the law, stressing that due process must be followed in matters involving the restriction of public funds.
The dispute has further intensified the debate over the extent of the EFCC's investigative powers and the constitutional safeguards governing the financial autonomy and operations of state governments.
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