On August 5, 2026, the EFCC issued a directive preventing any withdrawals from the state’s statutory allocation account as part of an investigation into suspicious financial activities related to approximately N11 billion in various state funds. The EFCC justified its actions by citing unusual fund movements from August 2, 2026, that raised alarms regarding potential fraudulent mismanagement.
In an official statement, the EFCC claimed that they were compelled to act in light of these fund transfers and denied any political motivations, insisting their responsibility was to protect state funds regardless of the upcoming governorship election. They mentioned Osun State was not an isolated case, as several other states were also under investigation. The EFCC urged the public to disregard perceptions of political bias and emphasized their commitment to upholding financial integrity for the sake of all Nigerians.
In response, NBA President Afam Osigwe (SAN) argued that a blanket freeze on a state’s accounts would effectively hinder governance and constitute an abuse of power. He acknowledged the EFCC’s power to pursue particular accounts suspected of fraud, but insisted that a wide-reaching restriction was unconstitutional. Osigwe called on banks to ignore any such directive and highlighted the need for legal justification and court orders for freezing any governmental accounts.
Similarly, Senior Advocate of Nigeria Adeyinka Olumide-Fusika questioned the legitimacy of the EFCC’s no-debit order, noting that legal precedents require a judicial order for account freezes. He pointed out that while the EFCC may impose restrictions on individual accounts, actions against a state government invoke serious constitutional implications.
Another Senior Advocate, Isiaka Olagunju (SAN), characterized the EFCC’s actions as a severe violation of the 1999 Constitution, contending that specific allegations against individual state officials should lead to more targeted measures rather than broad, state-wide restrictions. The consensus among these legal experts underscores the necessity for the EFCC to operate within legal confines, especially as it relates to the financial activities of state governments amid politically charged contexts, such as forthcoming elections.
