Osun Account Freeze: State Counsel Challenges EFCC Action, Says No Court Order Was Served.

Osun Account Freeze: State Counsel Challenges EFCC Action, Says No Court Order Was Served.

OSOGBO, Osun State A fresh legal controversy has emerged over the restriction placed on Osun State Government’s statutory allocation account, with the state’s counsel, Prof. Mubarak Adekilekun, SAN, insisting that no court order was served on the government or First Bank before the Economic and Financial Crimes Commission (EFCC) directed the restriction.

Adekilekun made the disclosure while speaking on Channels Television’s Politics Today on Friday, as debate intensified over the legality of the EFCC’s action involving the state’s account.

According to the Senior Advocate, the EFCC’s letter directing First Bank to restrict access to the account was subsequently transmitted to the Osun State Government, but the bank confirmed that no accompanying court order had been served.

He argued that the applicable legal framework requires a court order to be obtained and served, particularly on the affected financial institution, before such a restriction can lawfully be maintained.

The controversy centres on the EFCC’s use of a Post No Debit (PND) restriction on the account, which holds Osun’s statutory allocations from the Federation Account.

Adekilekun acknowledged that the EFCC has statutory powers to investigate suspected financial offences but maintained that those powers must be exercised consistently with relevant provisions of Nigeria’s money laundering laws.

He rejected the argument that the commission could simply rely on its investigative powers to place a PND restriction on a state government account without the required judicial process.

Falana Defends EFCC’s Legal Position

The state counsel’s position contrasts with that of human rights lawyer and Senior Advocate of Nigeria, Femi Falana, who has argued that the EFCC acted within its legal powers.

Falana reportedly maintained that the commission could impose a temporary restriction while seeking judicial authorisation, citing a 2022 Court of Appeal decision involving the Benue State Government and the EFCC.

According to the legal position cited by Falana, an account may be subjected to a Post No Debit restriction for a limited period, provided the anti graft agency obtains the necessary court order within the prescribed timeframe.

The competing interpretations have therefore shifted the dispute from the question of whether the EFCC can investigate state government finances to the more specific issue of when and how an account restriction must be judicially authorized and served.

Tinubu Directs EFCC to Return to Court

The dispute has also attracted presidential intervention.

President Bola Tinubu directed the EFCC to approach the court to vacate the relevant order and discontinue the action, with the timing of the restriction attracting scrutiny because it occurred ahead of the August 15 Osun State governorship election.

The development comes at a politically sensitive period in Osun, where the forthcoming governorship election has intensified scrutiny of state finances, political institutions and the activities of federal investigative agencies.

For the Osun Government, however, the legal question remains significant. Adekilekun said any decision on whether the state will continue with legal action would ultimately depend on instructions from his client.

The controversy underscores the importance of due process in the exercise of investigative and financial enforcement powers, particularly where public funds and the constitutional responsibilities of a state government are involved.

The dispute also highlights a broader legal question in Nigeria: how anti corruption agencies can swiftly protect suspected proceeds of crime while ensuring that restrictions on public or private bank accounts remain subject to judicial oversight and statutory safeguards.

As the competing interpretations continue to emerge, the courts are expected to provide the definitive legal clarification on the scope of the EFCC’s powers and the procedural requirements governing restrictions on state government accounts.