Osun Account Restriction: EFCC acted within law, says Falana

By Adebola Isimijola, Lagos

Human rights lawyer and Senior Advocate of Nigeria (SAN), Mr. Femi Falana, has said the Economic and Financial Crimes Commission (EFCC) acted within the law in restricting the Osun State Government’s account.

Falana made the clarification on Friday while speaking on Channels Television’s Politics Today, saying the anti-graft agency had the legal authority to freeze the account of a state government, provided it obtained a court order within the time allowed by law.

According to him, the legality of the EFCC’s powers had already been settled by the courts, particularly in a 2022 Court of Appeal judgment in a case involving the Benue State Government and the commission.

“Well, as far as the law is concerned, the EFCC has not acted illegally,” Falana said, adding that the commission could place a Post No Debit (PND) restriction on a government account for not more than 72 hours before approaching the court.

“Under the law, the EFCC has the power to freeze the account of the federal government or of any state or local government in Nigeria,” he said.

Falana recalled that in 2019, the Federal High Court in Benue State had ruled that the EFCC lacked the power to freeze the state’s account and awarded N50 million in damages against the commission.

He said the commission appealed the decision and that the Court of Appeal, in a judgment delivered in September 2022, upheld the EFCC’s power to place a PND restriction for not more than 72 hours before obtaining a court order.

“That remains the law in Nigeria today,” he said.

The SAN also cited a 2024 Supreme Court judgment arising from a challenge by the Kogi State Government and other states to the powers of anti-corruption agencies to investigate state accounts.

“In 2024, the Kogi State government, joined by many state governments, challenged the investigation—probing of state accounts by EFCC, ICPC, or NFIU. And in a historic judgment, the Supreme Court examined all the relevant laws and came to the conclusion that these agencies have the power to probe the accounts of any organisation, either at the federal, state, or local government [level]. That remains the law in Nigeria,” he said.

Falana said those dissatisfied with the existing legal position should approach the National Assembly if they want the law amended, stressing that as it stands, the EFCC can freeze any state account, but must go to court within 72 hours.

“If Nigerians—those who are concerned—want the law changed, they can go to the National Assembly. But for now, as of today, EFCC has the power to freeze the account of any state and, in not more than 72 hours, has to go to court,” he said.

On the Osun matter, Falana said the EFCC had gone to court and that the Federal High Court acted on information supplied by the commission.

“In this instance, the EFCC went to court, and the Federal High Court intervened based on information provided by the EFCC,” he said.

The controversy followed the EFCC’s restriction of an Osun State statutory allocation account amid an ongoing investigation into the alleged fraudulent handling of about N11 billion in Ecology Funds, Intervention Funds and Federation Account Allocation Committee (FAAC) allocations.

The commission said the restriction was temporary, limited to one account, and based on its powers under the EFCC Act and the Money Laundering (Prevention and Prohibition) Act, 2022.

President Bola Ahmed Tinubu later directed the EFCC to approach the court to vacate the order and discontinue the action, citing the timing of the restriction, coming close to the August 15 Osun governorship election.

Falana said the Osun State Government had challenged the legality and validity of the court order, rather than its timing.

“The President referred to the order obtained by the EFCC. And as should be done, the Osun State government has challenged the legality, the validity of the order, not the timing,” he said.

He warned against creating the impression that anti-corruption agencies should suspend investigations whenever elections are near, saying such a precedent would be dangerous.

“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 said.

He added that funds moving in billions of naira should not be ignored simply because elections are approaching.