EFCC can freeze state accounts, must obtain court order within 72 hours — Falana

ABUJA — Human rights lawyer and Senior Advocate of Nigeria (SAN), Femi Falana, has said the Economic and Financial Crimes Commission (EFCC) acted within its statutory powers by placing restrictions on the Osun State Government’s account.

Falana, who spoke on Friday during an appearance on Channels Television’s Politics Today, said the commission could place a Post No Debit (PND) restriction on a state government account, provided it obtained a court order within the period prescribed by law.

According to him, the legal authority of the EFCC to impose such restrictions had already been affirmed by the courts.

He cited a 2022 judgment of the Court of Appeal in a case involving the Benue State Government and the EFCC, saying the decision established that the commission could impose a PND restriction for up to 72 hours pending an application to court.

“Well, as far as the law is concerned, the EFCC has not acted illegally. As a matter of fact, that came out in the statement of the President: ‘I’m not questioning your mandate and the exercise of your power. However, I’m embarrassed,’” Falana said.

He maintained that the EFCC had the authority to restrict access to the accounts of the Federal Government, state governments and local governments, subject to compliance with the relevant legal requirements.

“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 cites Benue case

Falana recalled that the Federal High Court in Benue State had, in 2019, ruled against the EFCC in a case concerning the freezing of the state government’s account and awarded N50 million in damages against the commission.

He said the EFCC appealed the decision, leading to a judgment by the Court of Appeal in September 2022.

According to Falana, the appellate court overturned the earlier position and affirmed the commission’s power to impose a PND restriction on a government account, provided it approached the court within 72 hours.

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

Supreme Court ruling

The SAN also referred to a 2024 Supreme Court judgment arising from a suit filed by the Kogi State Government and other states challenging the authority of anti-corruption agencies to investigate state government accounts.

Falana said the apex court examined the relevant constitutional and statutory provisions and affirmed the powers of agencies including the EFCC, Independent Corrupt Practices and Other Related Offences Commission (ICPC) and Nigeria Financial Intelligence Unit (NFIU) to investigate 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 any move to alter the existing legal framework should be pursued through the National Assembly.

“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.

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