The Nigerian Bar Association (NBA) has faulted the Economic and Financial Crimes Commission (EFCC) over its decision to place a post-no-debit (PND) restriction on the Osun State Government’s bank account, insisting that the anti-graft agency lacks the legal authority to take such action without a court order.
The controversy followed the EFCC’s directive to First Bank to prevent withdrawals from the Osun State government’s statutory allocation account as part of an ongoing investigation into the alleged misuse of public funds.
The instruction was contained in a letter dated August 5, 2026, signed by Adenike Babalola, an Assistant Commander of the EFCC, on behalf of the agency’s Director of Investigation.
Responding to the development, Osun State Governor Ademola Adeleke condemned the action, describing it as an attempt by a federal agency to undermine the constitutional rights of the state government.
Adeleke also alleged that his administration had recently faced several politically motivated actions, including the reported harassment of members of the Accord Party and efforts to disrupt the operations of local government councils across the state.
The EFCC, however, defended its decision, stating that the restriction was imposed during an investigation into the alleged diversion of about N11 billion in ecological and intervention funds.
According to the commission, the investigation began in March 2026, and investigators later discovered what they described as significant transfers from the state’s account to several corporate entities from August 2 while the probe was still ongoing.
Reacting to the development in an interview with Punch, outgoing NBA President Afam Osigwe argued that the EFCC should have approached a competent court if it believed the account was being used for fraudulent activities.
He maintained that placing a blanket restriction on a state government’s account without judicial approval exceeds the commission’s legal powers and raises constitutional concerns.
Osigwe warned that such an action could cripple government operations by preventing access to funds required for the day-to-day running of the state.
He stressed that while the EFCC has the mandate to investigate financial crimes, any decision to freeze the account of an individual or government must be backed by a valid legal process and an order issued by a court.
The dispute has added a new dimension to the ongoing disagreement between the Osun State Government and the EFCC, with legal and constitutional questions now taking centre stage over the powers of anti-corruption agencies and the financial autonomy of state governments.
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