The Economic and Financial Crimes Commission (EFCC) has defended its decision to place a temporary restriction on an Osun State Government account, insisting that the action was lawful and carried out to prevent possible misuse of public funds.

EFCC Director of Public Affairs Wilson Uwujaren said on Thursday, 6 August, that the commission acted within its statutory powers after detecting what it described as suspicious transactions involving the account.

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The EFCC defended its decision to restrict access to an Osun State Government account for up to 72 hours, following objections from the state government and the Nigerian Bar Association, which challenged the commission’s authority to take such action without first securing a court order.

Speaking during an interview with Arise Television, Uwujaren explained that the restriction was a targeted measure affecting only one account and should not be interpreted as a complete freeze of Osun State Government finances.

“That restriction order does not mean that all the accounts of Osun State have been frozen. No. It is just a targeted restriction on one account of the Osun State Government,” he said.

According to the EFCC spokesman, investigators observed significant fund transfers from the account to several corporate entities within a one-week period, prompting the commission to act in order to preserve the funds while inquiries continued.

“The essence, like I said, is just to preserve that account because we observed suspicious activities on that account in terms of the transfer of funds to a number of entities within one week,” Uwujaren said.

He added that the commission could not ignore such activity, particularly when it had a legal responsibility to protect public funds from possible diversion.

Uwujaren said the restriction did not prevent the Osun State Government from carrying out its functions, noting that the state still had access to other accounts for its financial obligations, including routine payments.

He further explained that the temporary restriction could remain in place for up to 72 hours before the commission would be required to seek a court order if a longer restriction was necessary.

“The restriction order can last within 72 hours before we can come with a court order if we need to provide a court order,” he said.

The EFCC cited Section 34 of the EFCC Act and Section 7(6) of the Money Laundering (Prohibition) Act 2022 as legal provisions supporting its authority to place temporary restrictions on accounts linked to investigations.

The commission had earlier announced that it was investigating the Osun State Government over alleged financial issues involving about N11bn in Ecology Funds, Intervention Funds and Federation Account Allocation Committee (FAAC) allocations.

Some state officials, including the Accountant General, have reportedly been questioned as part of the investigation.

The development has triggered a legal and political dispute between the anti-graft agency and the Osun State Government, which has challenged the restriction.

Governor Ademola Adeleke had demanded an explanation from EFCC Chairman Ola Olukoyede, describing the action as unlawful.

The state Attorney-General, Oluwole Jimi-Bada (SAN), argued that while the EFCC had investigative powers over government accounts, it could not freeze such accounts without prior judicial approval.

The state government has indicated that it will challenge the EFCC’s action at the Federal High Court in Osogbo, setting the stage for a legal determination over the extent of the commission’s powers ahead of the Osun governorship election.

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The dispute adds another layer of tension to the political atmosphere in Osun, where questions surrounding public finance, accountability and the role of security agencies have become key issues ahead of the poll.