The Osun State Government has filed a suit against the Economic and Financial Crimes Commission (EFCC) over the freezing of its statutory allocation account, asking the Federal High Court in Abuja to declare the action unlawful and award N2 billion in exemplary damages.
The suit, marked FHC/ABJ/CS/1762/2026, was filed on August 5 by Governor Ademola Adeleke, the state Attorney-General and the Accountant-General.
The defendants are the EFCC, its Executive Chairman and First Bank of Nigeria Plc.
The plaintiffs are asking the court to determine whether the anti-graft agency has the legal authority to freeze or place a post-no-debit order on a state’s statutory allocation account without first obtaining a valid court order.
Government Seeks Court Declarations
The Osun Government argued that the EFCC’s directive to First Bank to freeze the account violated constitutional provisions, due process and the state’s financial autonomy.
It is seeking declarations that the freeze is unconstitutional, null and void, insisting that the EFCC can only take such action through a valid order issued by a court of competent jurisdiction.
The state also wants the court to rule that First Bank cannot lawfully restrict access to the account based solely on an administrative directive from the EFCC.
In addition, the plaintiffs are asking the court to set aside the freeze, restrain the EFCC from interfering with the account without judicial approval and award N2 billion as exemplary and aggravated damages for what they described as unlawful interference with public funds.
EFCC Defends Action
The lawsuit followed the EFCC’s announcement on Wednesday that it froze the state’s bank accounts over an ongoing investigation into the alleged fraudulent handling of public funds.
RELATED NEWS:
- Tinubu Orders EFCC to Lift Freezing Order on Osun Govt’s Account
- PFIPC Scam: ICPC Uncovers Two More Fake Agencies, Recommends Prosecution of Officials Involved
- Davido Calls for Peace Ahead of Osun Governorship Election
- INEC Extends PVC Collection in Osun Ahead of Governorship Poll
According to the commission, the investigation began in March, with several government officials, including the state Accountant-General, questioned by investigators.
The EFCC said it detected large transfers from the state’s accounts into several corporate entities from August 2 while the investigation was ongoing.
Osun Rejects Allegations
The Osun Government dismissed the EFCC’s explanation, accusing the commission of attempting to justify an illegal action.
Commissioner for Information and Public Enlightenment, Kolapo Alimi, alleged that the accounts were frozen to prevent the payment of palliatives promised to workers, claiming the action was influenced by former governor Gboyega Oyetola.
Tinubu Orders EFCC to Lift Freeze
President Bola Tinubu had earlier directed the EFCC to immediately return to court to vacate the order freezing Osun State’s accounts.
The President said although the commission acted within its statutory powers by obtaining a court order, the timing of the action, coming just days before the August 15 governorship election in the state, was inappropriate.
Tinubu added that he was embarrassed by the development because actions taken by federal agencies are often attributed to the Presidency, even when they are carried out without his prior knowledge.
Political Tension Ahead of Election
The dispute comes amid heightened political tension ahead of the August 15 governorship election in Osun State.
Governor Adeleke, who is seeking a second term on the platform of the Accord Party, has accused the All Progressives Congress (APC) of using federal agencies, including the police and the EFCC, to intimidate his supporters ahead of the poll. The APC has denied the allegation.
Rafiyat Sadiq is a political, justice, and human rights reporter with Pinnacle Daily, known for fearless reporting and impactful storytelling. At Pinnacle Daily, she brings clarity and depth to issues shaping governance, democracy, and the protection of citizens’ rights.