Osun drags EFCC to court over ‘illegal’ freezing of state account, demands N2bn damages

The Osun State Government has sued the Economic and Financial Crimes Commission (EFCC) over the freezing of its statutory allocation account.

In the suit marked FHC/ABJ/CS/1762/2026, filed on August 5 before the federal high court in Abuja, the plaintiffs are asking the court to nullify the anti-graft agency’s directive and award N2 billion as exemplary damages against the commission.

Governor Ademola Adeleke, the attorney-general of Osun; and the accountant-general of the state are the plaintiffs in the suit, while the EFCC, its executive chairman, and First Bank of Nigeria Limited are listed as defendants.

The plaintiffs are asking the court to determine whether the EFCC has the lawful authority to freeze, restrict or place a post-no-debit order on the state’s statutory account without first obtaining a valid court order.

They also want the court to determine whether the anti-graft agency’s directive to First Bank to freeze the account, without a prior or concurrent order of a court of competent jurisdiction, “does not constitute an egregious act of executive lawlessness, an unlawful resort to self-help, a flagrant abuse of statutory powers, an unlawful suppression of the constitutional powers and functions of the Plaintiffs, a threat to the constitutional and corporate existence of Osun State, a brazen and unlawful denial of the democratic rights and dividends of the people of Osun State, and a direct violation of the fundamental constitutional principles of due process, the rule of law, and the financial autonomy of a federating unit?”

According to the originating summons, the EFCC issued a letter dated August 5, 2026, with reference number CR:3000/EFCC/ABJ/HQ/PFS/TA/OSUN/VOL.17/666, directing the bank to freeze the state’s statutory allocation account.

The plaintiffs contend that neither the EFCC nor the bank can lawfully freeze or restrict access to the account without a subsisting order of a court of competent jurisdiction.

Among the reliefs sought, the Osun government is asking the court to declare that the freezing, restriction, blocking or placement of a post-no-debit order on its statutory allocation account without a valid court order is unlawful, unconstitutional, null and void.

It also seeks declarations that the EFCC is bound to act strictly in accordance with the constitution and the EFCC Establishment Act and cannot freeze a state’s statutory allocation account by mere administrative directive.

The state further wants the court to declare that First Bank cannot lawfully deny it access to the account based solely on the EFCC’s August 5 letter “except in the manner stipulated by law”.

The plaintiffs are also asking the court to set aside and nullify the freeze placed on the account, issue perpetual injunctions restraining the defendants from further interfering with the account without judicial authorisation, and award N2 billion as exemplary and aggravated damages for what they described as “unlawful interference with public funds”.

On Wednesday, the EFCC said it froze the state government’s bank accounts over the alleged fraudulent handling of funds.

The anti-graft agency said it had been investigating the government since March, adding that some officials, including the accountant-general, had been interviewed by its investigators.

The commission said it observed huge transfers from the accounts into different corporate entities since August 2 amid the probe.

But in a statement on Thursday, Kolapo Alimi, commissioner for information and public enlightenment, faulted the EFCC’s account, describing it as an attempt to cover up an illegal action through unfounded allegations.

“The real reason the commission froze the state account on the order of Gboyega Oyetola was to stop the payment of palliatives which the state government promised the workers some months ago,” Alimi said.

However, President Bola Tinubu has directed the EFCC to immediately vacate the freeze order on Osun bank accounts

In the statement on Thursday, Tinubu said he was embarrassed by the development because actions taken by federal institutions are often attributed to the presidency, even when he has no prior knowledge of them.

He said although the anti-graft agency acted within its statutory powers by obtaining a court order, the timing of the action, days before the August 15 governorship election in Osun, was inappropriate.

Tinubu directed the EFCC to immediately return to court to vacate the order freezing the state’s accounts and discontinue the action.

All of these come amid rising political tension in the state ahead of the governorship election slated for August 15.

Adeleke is seeking re-election for a second term on the platform of the Accord Party.

In recent weeks, the state has witnessed heated exchanges of verbal attacks between the governor’s supporters and those of the All Progressives Congress (APC), which is seeking to reclaim the state after four years.

The governor’s camp has accused the APC of using federal government agencies, including the police and the EFCC, to intimidate Accord Party supporters ahead of the poll. The APC has since denied the claims.