Adeleke sues EFCC for N2 billion over Osun account freeze

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Osun State Governor Ademola Adeleke has filed a N2 billion lawsuit against the Economic and Financial Crimes Commission (EFCC) over the freezing of the state's Federal Statutory Allocation Account. The suit, filed before the Federal High Court in Abuja, challenges the legality of the commission's action.

Lawsuit details

The Attorney General of Osun State and the Accountant General of the state are listed as the second and third plaintiffs. The defendants are the EFCC, its Chairman, and First Bank Nigeria Limited.

The Osun State Government is asking the court to declare the EFCC's action unlawful and unconstitutional. It argues that the commission had no legal authority to freeze the state's allocation account without following due process.

The plaintiffs are challenging whether the EFCC can lawfully freeze, restrict or place a post-no-debit order on a state government account without first obtaining and serving a valid order from a court of competent jurisdiction. They described the directive as an "egregious act of executive lawlessness", a "flagrant abuse of statutory powers", and a violation of constitutional principles of due process, the rule of law, and the financial autonomy of Osun State.

The government is seeking a declaration that the freezing of its account was unlawful, unconstitutional and of no legal effect. It also wants the court to nullify the restriction, order First Bank to immediately remove all restrictions and restore unrestricted access to the account, and restrain both the EFCC and the bank from imposing similar restrictions in the future except in accordance with the law.

In addition, the plaintiffs are asking the court to award N2 billion as exemplary and aggravated damages for the alleged unlawful interference with public funds, as well as the cost of litigation. No date has been fixed for the hearing.

EFCC investigation

The lawsuit follows an EFCC investigation into the Osun State Government over the alleged fraudulent handling of Ecology Funds, Intervention Funds and Federal Account Allocation Committee (FAAC) funds amounting to about N11 billion. The commission said it has been investigating the state since March 2026, and that several officials, including the state's Accountant General, had been questioned.

The EFCC argued that its preventive mandate requires it to safeguard public funds and that allowing the transfers to continue would have been irresponsible.

President's intervention

The legal action came just hours after President Bola Tinubu directed the EFCC to vacate the freezing order. The President said he was embarrassed by the timing of the development because it could create the impression of federal interference in the state's governorship election.

In a personally signed statement, Tinubu said he felt "deeply embarrassed, not by the EFCC's exercise of its mandate backed by a court order, but by the timing of the agency's action." He directed the EFCC to immediately approach the court to vacate the freezing order and discontinue the action against the Osun State Government.

Reactions and implications

The EFCC's decision has triggered a wider debate about the powers of anti-corruption agencies and the constitutional financial autonomy of states. The Nigerian Bar Association (NBA) criticised the blanket freezing of state government accounts, arguing that such a measure could effectively paralyse government operations.

NBA President Afam Osigwe (SAN) said that while the EFCC may seek court orders to freeze specific accounts linked to alleged criminal activity, a blanket restriction on a state government's accounts raises serious constitutional and legal concerns.

The Osun lawsuit is expected to test the limits of the EFCC's investigative powers, the scope of judicial oversight in financial crime investigations, and the constitutional protections available to state governments under Nigeria's federal system.

For Nigerian businesses and consumers, the case highlights the tension between anti-corruption enforcement and the smooth operation of state finances. The outcome could shape how anti-graft investigations affect state government accounts and fiscal autonomy.

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