Osun Sues EFCC Over ‘Illegal’ Account Freeze, Seeks ₦2bn Damages

The Osun State Government has filed a lawsuit against the Economic and Financial Crimes Commission (EFCC), challenging the freezing of its statutory allocation account and demanding ₦2 billion in exemplary damages over what it described as an unlawful action.

The suit, marked FHC/ABJ/CS/1762/2026, was filed on August 5 before the Federal High Court in Abuja. Governor Ademola Adeleke, the Osun State Attorney-General and the Accountant-General are the plaintiffs, while the EFCC, its Executive Chairman and First Bank of Nigeria Limited are listed as defendants.

According to court documents, the plaintiffs argued that the EFCC lacked the legal authority to freeze or restrict access to the state’s statutory allocation account without first obtaining a valid order from a court of competent jurisdiction.

The suit challenges a letter dated August 5, 2026, referenced CR:3000/EFCC/ABJ/HQ/PFS/TA/OSUN/VOL.17/666, through which the anti-graft agency instructed First Bank to place a freeze on the account.

The Osun Government maintained that the commission’s directive amounted to executive lawlessness, abuse of statutory powers and a violation of constitutional principles, including due process, the rule of law and the financial autonomy of states under Nigeria’s federal system.

The plaintiffs asked the court to declare that the EFCC cannot lawfully freeze a state’s statutory allocation account through an administrative directive and that First Bank cannot enforce such an instruction without a valid court order.

They also requested an order nullifying the account freeze, perpetual injunctions restraining the EFCC from taking similar actions without judicial authorisation, and an award of ₦2 billion as exemplary and aggravated damages.

The legal action followed the EFCC’s announcement that it froze the Osun Government’s accounts over alleged fraudulent handling of public funds. The commission said it had been investigating the state since March and claimed to have observed significant transfers from the accounts during the probe.

However, the Osun Government rejected the allegations, insisting the account freeze was politically motivated and intended to frustrate the payment of workers’ palliatives. The dispute later prompted President Bola Tinubu to direct the EFCC to return to court and vacate the freeze order, citing concerns over its timing ahead of the August 15 governorship election.