The Nigerian Bar Association is pushing back against the Economic and Financial Crimes Commission over its decision to freeze Osun State’s accounts.
NBA President Afam Osigwe said on Wednesday that the EFCC does not have the legal authority to issue a blanket post-no-debit order on a state government’s funds. Speaking to The Punch, he argued that such a move effectively shuts down government operations and can only be done with a court order.
“If the EFCC believes a state account is being used for fraud, it should go to court,” Osigwe said. “A blanket freeze is unconstitutional, exceeds EFCC powers, and amounts to an abuse of power.” He also urged First Bank not to obey the directive.
What triggered it
In a letter dated August 5, 2026 signed by Assistant Commander Adenike Babalola, the EFCC told First Bank to stop withdrawals from Osun’s statutory allocation account. The agency said it is investigating the alleged misuse of N11 billion in ecological and intervention funds, a probe that started in March. According to the EFCC, it noticed large transfers out of the account to different corporate entities starting August 2.
Osun Governor Ademola Adeleke rejected the action. He said the state will not accept federal agencies undermining subnational governments, and linked it to what he called a pattern of sponsored attacks, including harassment of Accord Party members and attempts to disrupt local government operations.
The NBA’s position adds a legal challenge to the EFCC’s ongoing investigation, with the bar association insisting due process must be followed before any state account can be restricted.
