NBA faults EFCC over Osun account freeze, says action unconstitutional

The Nigerian Bar Association (NBA) has criticised the Economic and Financial Crimes Commission (EFCC) over its decision to freeze Osun State Government’s statutory allocation account, arguing that the anti-graft agency lacks the constitutional authority to impose a blanket restriction on a state’s finances without due legal process.

 

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 investigation into the alleged mismanagement of about ₦11 billion in Ecology Funds, Intervention Funds and Federal Account Allocation Committee (FAAC) allocations.

 

In a statement, the commission said the restriction became necessary after investigators detected what it described as suspicious transfers of funds from the account beginning August 2, insisting the action was not connected to the forthcoming August 15 Osun governorship election.

 

Reacting, NBA President Afam Osigwe (SAN) said the EFCC could only seek a court order to freeze specific accounts suspected to be linked to financial crimes and could not lawfully freeze a state’s finances wholesale.

 

He described any blanket restriction as unconstitutional, warning that it could cripple government activities and amount to an abuse of power.

 

Several Senior Advocates of Nigeria, including Adeyinka Olumide-Fusika and Isiaka Olagunju, also questioned the legality of the action, maintaining that a valid court order should precede any account freeze.

 

However, Wolemi Esan (SAN) noted that under the Money Laundering (Prevention and Prohibition) Act, the EFCC could impose a temporary stop order for up to 72 hours without first obtaining a court order, although any extension beyond that period would require judicial authorisation.

 

Professor Damilola Olawuyi (SAN) defended the use of account freezes as a recognised anti-corruption measure but cautioned that such powers must not be deployed for political purposes or as a substitute for proper investigations.

 

Meanwhile, opposition parties, including the African Democratic Congress (ADC), Labour Party (LP), Social Democratic Party (SDP), Young Progressives Party (YPP) and Nigeria Democratic Congress (NDC), condemned the account restriction, alleging it could undermine democracy ahead of the Osun 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.

 

Osun State Attorney General and Commissioner for Justice, Oluwole Jimi-Bada, said the state government had concluded plans to challenge the EFCC’s action in court, insisting the commission could investigate government accounts but lacked the power to freeze them without a court order.

 

The controversy comes just days before the August 15 governorship election in Osun State, with the development intensifying political and legal debates over the powers of anti-graft agencies and the limits of executive authority.