‘We Acted Within The Law’- EFCC Counters Adeleke, NBA Over Osun Account Freeze

• EFCC insists its restriction on the Osun State Government’s statutory allocation account was lawful, saying it acted to preserve public funds after detecting suspicious financial transactions.

• The anti-graft agency rejects claims by Governor Ademola Adeleke and the Nigerian Bar Association that it required a court order before imposing the restriction

• Commission clarifies that only one government account was placed under a temporary restriction, maintaining that the Osun Government retains access to other accounts and can continue its operations.

• Latest defence deepens the legal and political showdown ahead of the August 15 governorship election, with the Osun Government already challenging the EFCC’s action before the Federal High Court.

August 6, () — The Economic and Financial Crimes Commission (EFCC) has defended its decision to restrict the Osun State Government’s statutory allocation account

It insisted that the action was lawful and did not require prior judicial approval, contrary to claims by Governor Ademola Adeleke and the Nigerian Bar Association (NBA).

The Commission said its intervention was necessitated by suspicious financial transactions uncovered during an ongoing investigation into the alleged diversion of about N11 billion in Ecology Funds, Intervention Funds and Federation Account Allocation Committee (FAAC) allocations.

Speaking during an interview on Arise Television on Thursday, the EFCC’s Director of Public Affairs, Wilson Uwujaren, maintained that the anti-graft agency merely exercised its statutory mandate to safeguard public funds after observing unusual movements of money from the account.

“As we indicated in the statement released by the Commission, we took that step to preserve the account of the Osun State Government.

“We observed in the past one week that activities on that account looked suspicious and, based on the mandate of the Commission, we took the step of placing a restriction on that account to preserve it,” Uwujaren said.

The EFCC spokesman stressed that the Commission’s action should not be interpreted as a blanket freeze on the finances of the Osun State Government.

“That restriction order does not mean that all the accounts of Osun State have been frozen. No. It is just a targeted restriction on one account of the Osun State Government,” he explained.

Uwujaren disclosed that investigators detected substantial transfers from the account into several corporate entities within a short period, prompting the Commission to intervene before the funds could be dissipated.

“The essence, like I said, is just to preserve that account because we observed suspicious activities on that account in terms of the transfer of funds to a number of entities within one week.

“So we had to take that decision to place a restriction on that account, not minding the fact that there is an election process in place,” he added.

He argued that the EFCC would have faced public criticism had it ignored the transactions and public funds were subsequently diverted.

“We have the responsibility under the law to do so because if we don’t take that step and, for instance, funds are looted from the account of the Osun State Government, the Nigerian public will ask where the EFCC was when those funds were being moved,” he said.

Addressing concerns that the restriction could cripple governance in the state, Uwujaren insisted that the Adeleke administration still had access to other government accounts.

“It does not stop the Osun State Government from running the government of the state because they have access to other funds in the other accounts that they have.

“In any case, the payment of salaries and other expenditures by the state government happens just once in a month. What we have done is not a blanket freezing of the account. It’s just a targeted freezing. Once we are satisfied that activities on that account are no longer suspicious, it will be lifted,” he said.

On the legal basis for the Commission’s action, Uwujaren maintained that the EFCC possesses statutory powers to impose a temporary restriction on suspicious accounts pending further investigation.

“A number of people have asked whether the Commission has the power to do so under the law. I can assure you that we have the power to place a temporary restriction on an account.

“Section 34 of the EFCC Act and Section 7(6) of the Money Laundering (Prevention and Prohibition) Act, 2022, give us that authority to take that step,” he stated.

According to him, the temporary restriction can remain in force for up to 72 hours, after which the commission would obtain a court order if it intends to maintain the restriction.

“The restriction order can last within 72 hours before we can come with a court order if we need to provide a court order,” he added.

Background

recalls that the EFCC had earlier disclosed that it had been investigating the Osun State Government since March 2026 over the alleged fraudulent handling of about N11 billion in Ecology Funds, Intervention Funds and FAAC allocations.

The Commission said several officials, including the state’s Accountant-General, had been questioned as part of the investigation.

The latest explanation follows days of sharp exchanges between the anti-graft agency, the Osun State Government and NBA, after the EFCC directed First Bank to place the state’s statutory allocation account under a Post No Debit (PND) restriction.

While Governor Adeleke condemned the action , insisting that the Commission acted without lawful authority and directed the Attorney-General and Commissioner for Justice, Oluwole Jimi-Bada (SAN), to challenge the restriction before the Federal High Court in Osogbo, the Nigerian Bar Association (NBA) also said the EFCC lacked power to unilaterally freeze the bank accounts of the Osun state government.

Speaking in an interview with newsmen, Afam Osigwe, the outgoing NBA president, said the anti-graft agency could have secured a court order if it believes that an account of the state government is being used for fraud.

“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.

“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 ststate.

“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,” Osigwe said

The Osun Government also rejected the EFCC’s allegation that N11 billion was diverted, describing it as an afterthought designed to justify what it called an unlawful freezing of the state’s account.

According to the government, state resources have been transparently deployed to infrastructure, workers’ welfare, and other developmental projects, insisting that the investigation has become politically motivated.

The controversy has since evolved into one of the most contentious issues ahead of the governorship election, with both the EFCC and the Osun State Government standing firm on their respective positions as the legal battle over the account restriction gathers momentum.