By SUNTV Global Channel
August 6, 2026
The Osun State Government has filed a lawsuit against the Economic and Financial Crimes Commission (EFCC), its Executive Chairman, and First Bank of Nigeria Limited over the freezing of the state’s statutory allocation account, describing the action as unlawful and politically motivated.
Court documents filed at the Federal High Court in Abuja reveal that the state is challenging the restriction placed on its Federal Statutory Allocation Account, arguing that the freeze was carried out without a valid court order and comes at a critical period, just days before the Osun State governorship election.
The suit, filed by Governor Ademola Adeleke, the state’s Attorney-General, and the Accountant-General, seeks an immediate reversal of the account restriction, a perpetual injunction preventing similar actions without due legal process, and ₦2 billion in damages for the alleged unlawful interference with the state’s finances.
According to the state government, it became aware of the restriction on August 5 after receiving a notification from First Bank that the account had been frozen on the directive of the EFCC.
Osun argues that the account serves as the state’s primary revenue account, used to pay workers’ salaries, pensions, contractors, healthcare services, education, security operations, infrastructure projects, and other essential government obligations.
The government maintains that the EFCC exceeded its legal powers by directing the bank to freeze the account without first obtaining an order from a court of competent jurisdiction. It also accuses First Bank of failing in its duty by complying with the directive without judicial authorization.
In its court filings, the state further alleges that the timing of the account freeze, barely days before the governorship election, raises serious concerns and could negatively affect government operations and public confidence.
The government insists it is unaware of any court declaration identifying the funds in the account as proceeds of crime and argues that if the EFCC was investigating specific transactions, it should have followed established legal procedures instead of restricting the entire account.
The lawsuit warns that continued restriction of the account could disrupt salary payments, pension obligations, healthcare delivery, public infrastructure projects, and other essential services across the state.
Meanwhile, the EFCC has defended its action, stating that the restriction was part of an ongoing investigation into the alleged diversion of about ₦11 billion in Ecology Funds, Intervention Funds, and Federation Account Allocation Committee (FAAC) allocations. The anti-graft agency denied that the move was politically motivated or linked to the forthcoming governorship election.
In a related development, President Bola Tinubu directed the EFCC to immediately take steps to vacate the order freezing the Osun State Government’s accounts. The President expressed concern over the timing of the action, noting that it could create the impression of federal interference in the state’s electoral process.
The Federal High Court is expected to determine the urgent applications filed by the Osun State Government as the legal battle over the account freeze unfolds.
