• Senior Advocate highlights 2022 Appellate Court ruling backing anti-graft agency’s powers to freeze state accounts
• Warns against creating a “dangerous precedent” of halting corruption probes during election cycles
By Saheed Oyelakin
Renowned human rights lawyer and Senior Advocate of Nigeria (SAN), Mr. Femi Falana, has declared that the Economic and Financial Crimes Commission (EFCC) acted strictly within the bounds of Nigerian law when it obtained a court order to freeze an account belonging to the Osun State Government.
Speaking during an appearance on Channels Television’s Politics Today, Falana emphasized that the legality of the commission’s statutory mandate to investigate and restrict state finances is no longer a matter of debate, having been firmly settled by Nigeria’s highest courts.
Judicial Precedents Back EFCC Mandate
Unpacking the legal framework governing anti-graft operations, Falana explained that while the commission can temporarily place a 72-hour Post No Debit (PND) restriction on an account, its long-term freeze actions must be sanctioned by a competent court of law—a requirement the EFCC met in the Osun case.
Citing key judicial authorities, Falana recalled a pivotal legal battle between the Benue State Government and the anti-corruption agency.
In 2019, the Federal High Court in Makurdi ruled that the EFCC lacked the power to freeze a state’s account, awarding ₦50 million in damages against the commission,” Falana noted. “However, the EFCC appealed the decision, and in September 2022, the Court of Appeal delivered a landmark judgment holding that the commission indeed possesses the legal authority to freeze state accounts, provided it secures a court order within 72 hours of imposing an initial restriction. That remains the subsisting law of the land today.”
Falana further referenced a groundbreaking 2024 Supreme Court judgment in a suit instituted by the Kogi State Government alongside several other state governors challenging the powers of federal anti-graft agencies to probe state finances.
In that historic judgment, the Supreme Court meticulously examined all relevant statutory provisions and concluded that agencies like the EFCC, ICPC, and NFIU hold the constitutional power to probe the finances of any tier of government—federal, state, or local. That remains the law in Nigeria,” he added, stressing that anyone seeking a departure from this legal reality must approach the National Assembly for legislative amendments.
The Osun Allocation Controversy
The legal expert’s clarification comes amidst intense political debate following the EFCC’s recent freeze of Osun State’s statutory allocation account.
According to the commission, the drastic measure was necessitated by suspicious, massive fund movements uncovered during an active investigation into the alleged fraudulent diversion of approximately ₦11 billion. The funds involved were drawn from, Ecology Funds, State Intervention Funds, Federation Account Allocation Committee (FAAC) allocations
The EFCC maintained that its action was a temporary, preventive measure strictly limited to a single operational account and executed in full compliance with the EFCC Establishment Act and the Money Laundering (Prevention and Prohibition) Act, 2022.
Presidential Intervention and Election Sensitivities
The anti-graft agency’s action prompted an immediate directive from President Bola Ahmed Tinubu, who instructed the EFCC to approach the court to vacate the freeze order and discontinue the action. The President cited the sensitive timing of the move, coming barely days ahead of the upcoming August 15 Osun State Governorship Election, noting that while he does not question the agency’s mandate, the timing caused significant political embarrassment.
Commenting on the President’s reaction, Falana pointed out that even the presidency did not question the legal legitimacy of the EFCC’s authority, but rather the strategic timing.
“As far as the law is concerned, the EFCC has not acted illegally,” Falana reiterated. “Even the statement from the President reflected this when he acknowledged: ‘I am not questioning your mandate and the exercise of your power. However, I am embarrassed.’”
Falana noted that the Osun State Government has since filed a legal challenge against the Federal High Court order, targeting its legal validity rather than its proximity to the polls.
A Warning Against Immunity During Elections
Concluding his assessment, the Senior Advocate issued a stark warning against establishing a precedent where anti-corruption agencies are expected to turn a blind eye to financial crimes simply because an election is around the corner.
“We must be very careful not to create a dangerous impression that when elections are 10, 20, or 30 days away, anti-graft agencies must look the other way,” Falana warned. “If billions of naira are being suspiciously moved, telling investigators, ‘Don’t look at those funds because elections are coming,’ sets a perilous precedent for national accountability and the rule of law.”
