Senior Advocate of Nigeria, Femi Falana, has declared that the Economic and Financial Crimes Commission (EFCC) acted within its legal powers when it froze an Osun State government account, citing two landmark court rulings that affirm the anti-graft agency's authority over state funds.
Falana Cites Court Precedents
Speaking on Channels Television's Politics Today on Friday, Falana referenced a 2022 Court of Appeal decision and a 2024 Supreme Court judgment to support his position. He explained that in 2019, a Federal High Court in Benue State had ruled against the EFCC, awarding N50 million in damages for freezing a state account. However, the Court of Appeal overturned that ruling in September 2022, granting the EFCC the power to place a Post No Debit restriction on any government account for up to 72 hours before obtaining a court order.
"That remains the law in Nigeria today," Falana said, adding that the Supreme Court in 2024 also affirmed the EFCC's investigative powers over state accounts when it dismissed challenges by Kogi and other states against the EFCC, ICPC, and the Nigerian Financial Intelligence Unit.
EFCC's Investigation into Osun Funds
The EFCC froze the Osun State statutory allocation account amid an ongoing investigation into the alleged fraudulent handling of about ₦11 billion in Ecology Funds, Intervention Funds, and Federation Account Allocation Committee allocations. The commission cited suspicious fund movements linked to the probe.
Falana noted that the Osun State government had challenged the legality of the court order itself, not its timing, which he said was the correct approach. He cautioned that using elections as a reason to pause anti-corruption investigations would set a dangerous precedent.
Warning Against Election-Based Immunity
"Because we must also be very careful that we don't give a dangerous impression that when elections are 10 days away, 20 days away, 30 days away, the anti-graft agencies must turn the other eye," Falana warned. He argued that such a stance would effectively shield governments from scrutiny whenever polls approach.
Falana added that anyone seeking to change the current legal framework should take the matter to the National Assembly rather than challenge the EFCC's exercise of powers already upheld by the courts.
Political Reactions and Wider Context
The Accord Party's National Chairman earlier addressed a world press conference in Abuja, calling out the EFCC over the freezing of the Osun State Government's account. The party alleged that the anti-graft agency acted outside its constitutional powers just days before the August 15 Osun governorship election. The party also raised alarm over the alleged arrest of about 60 of its supporters across Abuja, Osun, and Nasarawa states.
Data shared by analytics account StatiSense showed that eight Nigerian states have had government accounts frozen by the EFCC since 2006. Plateau State in the north-central region was the first, back in 2006.
Falana's remarks come amid growing controversy and calls for the EFCC chairman to resign over the Osun account freeze, with Governor Ademola Adeleke demanding N2 billion in damages.
