Court Restrains EFCC from Probing Oyo State Government Finances
The federal high court in Ibadan, Oyo state, has placed a restraint on the Economic and Financial Crimes Commission (EFCC), barring it from proceeding with its proposed investigation into the finances of the Oyo state government. Justice Nkeonye Maha delivered the ruling in favour of the Oyo state government, which had filed a suit challenging the legality of the EFCC's demands, according to The Guardian in its report on Wednesday, July 22.
While the judge recognised that the Commission holds statutory powers to investigate financial crimes, she made clear that those powers are not without limits and must be exercised in line with the Constitution and the rule of law, as noted by Tribune Online. The ruling effectively blocks the EFCC from accessing detailed financial records of the state dating back to 2021.
Background of the Dispute
The conflict began when the EFCC sent a letter to the Oyo state accountant-general on June 2, 2025. In that letter, the Commission requested copies of all contracts involving the state government, as well as details of every transaction and payment made to contractors from 2021 up to the date of the letter. The Oyo state government, represented by its attorney general, Abiodun Aikomo, challenged the request in court, describing it as oppressive, unreasonable, and unduly burdensome given the sheer volume of contracts the state had entered into over that period.
The EFCC, through its counsel I.G. Ojibor, leading S. Adamu, defended the move by citing Section 38 of the EFCC Act (2004), which allows the Commission to demand and receive information from any person, authority, corporation, or company without hindrance. The anti-graft agency argued this provision gave it the authority to conduct a broad review of the state's financial records.
Court's Ruling Against EFCC
Justice Maha rejected that argument. In her judgment, she described the EFCC's proposed inquiry as speculative and a "fishing expedition," finding that it lacked the foundation of specific allegations that would justify such an expansive demand. The court set aside the EFCC's letter dated June 2, 2025, and ruled that any future request for information from the Commission must be reasonable and linked to a specific offence being investigated under the EFCC Act.
The judge also noted that the constitutional right of the plaintiffs to fair hearing could not be overridden under the cover of an investigation. The verdict draws a distinction between the EFCC's legitimate investigative role and a blanket trawl of government records, clarifying that Section 38 of the Act was never intended to support roving or speculative inquiries.
Implications of the Verdict
This ruling sets a significant precedent for the relationship between state governments and anti-corruption agencies in Nigeria. It reinforces the principle that investigative powers must be exercised within constitutional bounds and cannot be used for indiscriminate data collection. The Oyo state government, led by Governor Seyi Makinde, has welcomed the decision, while the EFCC has yet to announce whether it will appeal.
The case highlights ongoing tensions between federal agencies and state governments over financial oversight. Legal experts suggest the judgment may influence how other states respond to similar requests from the EFCC in the future.
