By Comrade Embassy- Oseni Momodu, Esq.
The Nigeria’s political atmosphere became tensed on Wednesday August, 5th 2026 when the Economic and Financial Crimes Commission (EFCC) allegedly froze Accounts belonging to Osun state government. Report suggests the said account (s) is (are) domiciled in First Bank Of Nigeria (First Bank).
Ordinarily, l didn’t intend commenting due to partisan reservations. However, calls kept pumping from across professional, business, comradeship community and political front that my opinion is missing at least now that l’m a lawyer.
The question wether the EFCC could validly freeze state government’s account as demonstrated in OSUN STATE is hinged on the limited circumstances prescribed by law and subject to judicial oversight.
I must say the EFCC does not possess an unfettered statutory power to FREEZE accounts of a State Government merely because it is investigating or monitoring transactions of the state. To be legal, the Commission must first obtain a valid court order in conformity with certain regulations backed by law as precondition before engaging in such voyage.
However, amidst the backlash, the burden rests on the Commission to demonstrate that its action was backed by a valid order of a court of competent jurisdiction.
If l may respectfully ask, could the EFCC in exercise of these same powers under Section 6 of its establishment Act FREEZES the Federal Government’s Accounts? Would that ever occur. If the answer is in the negative, why always State Governments? If Governor Ademola was of the APC, would he suffer from this embarrassing charade?.
I ask these simple questions so we are better guided to know where you belong in our so called one Nigeria whether APC, AAC, PDP, NDC, NDP, etcetera.
As a founding member of the All Progressives Congress (APC), lawyer and professional in politics, l should not be seen adorning the EFCC trampling on any of the confedrating unit as seen in Osun State without comment.
Statutory References
- Arguing from Section 6 of the Economic and Financial Crimes Commission (Establishment) Act, 2004 which the Commission probably hinged its ground to freeze the Account, that Section doesn’t present any compelling circumstance. The Section talks about EFCC powers to investigate financial crimes, including money laundering, corruption, and related offences. However, it does not expressly confer a power to freeze bank accounts as it did to Osun State.
- Under Section 34 of the said Act which authorizes the anti-graft agency to trace, seize, and attach the proceeds of crime, these powers are generally circumscribed to judicial supervision and applicable legal procedures.
The arguments that the agency has been monitoring the state transactions is not tenable.
What Nigerians believed is grand plan by the ruling party (APC) to hoodwink AAC party ahead the slated Saturday August 15th, 2026 Gubernatorial Election coming up in that state.
A careful statutory and judicial overview of EFCC’s actions of Freezing Account of a legitimate government tells it all without more.
In GUARANTY TRUST BANK PLC v. ADEDAMOLA, the Court of Appeal held that a bank account should not be frozen without compliance with the law and that a valid court order is generally required where the law so provides.
Did the EFCC obtain any court order before rushing to Freeze Osun Accounts? The onus lies on them to prove to Nigerians.
Similarly in another authority, the position of courts remained the same in FEDERAL REPUBLIC OF NIGERIA v. NWOBIKE whose account was frozen by the Commision. The Court aptly reiterated that EFCC’s exercise of its powers should be within limits prescribed by statute and constitutional safeguards while recognizing its investigative powers.
The same legal reasoning was invoked in SKYE BANK PLC. v. IWU wherein the Court empathized appropriate judicial authorization before the EFCC could legitimately Freeze Accounts even when there are reasonable grounds.
These judicial decisions underscore the importance of due process of law before restricting access to funds domiciled in custody of financial institution.
CONCLUSION
Assuming without conceding that EFCC has reasonable ground to act as it has done, the funds so frozen belong to a government responsible for constitutional functions such as payment of salaries, provision of public services, meeting statutory financial obligations, pension, etc. the court is expected to exercise caution to mitigate hardships of innocent citizens. A blanket administrative directive from above by the EFCC freezing state accounts without disclosed statutory authority or judicial approval is fatal and susceptible to challenge as unconstitutional, null and void in the court of law.
The EFCC has limitless time to prosecute the government of Governor Ademola Adeleke when he leaves government by which time Section 308 would cease to protect him.
Illegality upon illegality remains illegality. It doesn’t matter who does it.
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