The Nigerian Bar Association (NBA) has warned that the Economic and Financial Crimes Commission’s (EFCC) post-no-debit (PND) order could entirely ground the operations of the Osun State government.The Dispute
The anti-graft agency instructed First Bank to block all withdrawals from Osun State’s statutory allocation account as part of an active investigation. The directive was issued in an August 5, 2026 letter signed by Adenike Babalola, the EFCC’s Assistant Commander, on behalf of the Director of Investigation.
In a swift reaction, Osun State Governor Ademola Adeleke condemned the move, stating that his administration will not allow federal agencies to trample on the rights of subnational governments. Governor Adeleke claimed the freezing is part of a pattern of politically sponsored attacks aimed at destabilising the state and hindering the operations of its Local Government Areas (LGAs).
Defending its actions, the EFCC stated that the account was frozen due to an ongoing probe into the alleged fraudulent handling of ₦11 billion in ecological and intervention funds.
According to the commission, the investigation into the Osun State government began in March 2026. The agency justified the immediate freeze by claiming it detected massive, suspicious fund transfers from the statutory account to various corporate entities starting on August 2.
Weighing in on the controversy, outgoing NBA President Afam Osigwe declared the EFCC’s directive unconstitutional and an abuse of power. Speaking with The Punch, Osigwe argued that no agency has the right to issue blanket orders that paralyze an entire state government.
If the EFCC believes a specific account is tied to fraud, it must present a proper basis and secure a legitimate court order,” Osigwe stated. He stressed that federal agencies cannot bypass the judiciary to freeze state funds and urged First Bank not to comply with the EFCC’s administrative directive.
