Isaac Fayose criticises EFCC over freeze on Osun government account

Social commentator Isaac Fayose has criticised the Economic and Financial Crimes Commission (EFCC) over its decision to place a Post-No-Debit (PND) restriction on a bank account belonging to the Osun State Government, describing the move as politically motivated and an overreach of the agency’s powers.

The restriction followed a directive issued by the EFCC to First Bank, instructing it to place a PND order on the state’s statutory allocation account as part of an ongoing investigation into the alleged diversion of about ₦11 billion in statutory and intervention funds.

According to the anti-graft agency, the action was prompted by what it described as unusual and substantial transfers from the account to several corporate entities. The EFCC said the restriction was intended to preserve public funds while investigations continue.

Reacting to the development, Fayose questioned the timing of the action, arguing that restricting access to a state’s primary allocation account could disrupt governance and affect the payment of salaries, public services and other government obligations.

He also expressed concern that the move could be perceived as politically motivated, particularly given the state’s political climate, and urged the EFCC to conduct its investigations without actions that could undermine public confidence in its neutrality.

“Freezing the account of an entire state government is an overreach that stifles governance,” Fayose said, adding that anti-corruption investigations should focus on individuals or specific transactions rather than measures capable of affecting the day-to-day administration of a state.

The development has also attracted reactions from legal stakeholders. The Nigerian Bar Association (NBA) raised concerns over the account restriction, arguing that freezing a state government’s statutory allocation without an express court order raises constitutional and legal questions regarding federal-state relations and due process.

However, the EFCC has defended its decision, insisting that the action is lawful and not politically motivated.

The commission maintained that the temporary restriction was imposed in line with its investigative powers under the EFCC Act and the Money Laundering (Prevention and Prohibition) Act, stating that the measure was aimed solely at preserving public funds pending the conclusion of its investigation.

Meanwhile, the Osun State Government has indicated that it will challenge the account restriction in court, setting the stage for a legal battle over the EFCC’s powers to freeze government accounts during ongoing investigations.