The Nigerian Bar Association (NBA) has faulted the Economic and Financial Crimes Commission (EFCC) over its directive freezing the Osun State Government’s bank account, describing the action as unconstitutional and beyond the agency’s statutory powers.

The anti-graft agency had instructed First Bank Plc to place a post-no-debit (PND) restriction on the Osun State Government’s statutory allocation account as part of an ongoing investigation into the alleged fraudulent handling of N11 billion ecological and intervention 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 Director of Investigation.

The move has sparked criticism from both the Osun State Government and the NBA, with concerns that the restriction could cripple government operations and disrupt the delivery of public services.

Governor Ademola Adeleke condemned the action, saying the state would not accept what he described as attempts by federal agencies to undermine the constitutional rights of subnational governments.

According to the governor, the account restriction is part of a series of what he termed sponsored attacks against his administration, including the alleged harassment of members of the Accord Party and efforts to frustrate the operations of local government councils in the state.

The EFCC, however, defended its decision, saying the restriction became necessary following an ongoing investigation into the alleged diversion and fraudulent management of N11 billion ecological and intervention funds.

The commission said it commenced investigations into the matter in March and claimed that while the probe was ongoing, it observed significant transfers from the state’s account into several corporate entities beginning August 2.

Speaking in an interview with The Punch, the outgoing President of the Nigerian Bar Association, Afam Osigwe, argued that the EFCC does not possess the legal authority to unilaterally freeze the bank accounts of a state government.

Osigwe said while the commission has powers to investigate financial crimes, any decision to freeze an account must be backed by a valid court order.

He warned that placing a blanket restriction on a state’s account could effectively paralyse government activities and amount to an abuse of power.

“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.

“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. We should not have such a situation.

“If there is a need to freeze the account of a person or government, there is a need to provide a proper basis for it and get a proper order.”

The NBA president also urged First Bank not to comply with the EFCC’s directive, insisting that any restriction on a government account should only be enforced pursuant to a valid court order.