Osun Governor sues EFCC for N2 billion over alleged unlawful freezing of state funds

Osun State Governor Senator Ademola Adeleke has initiated a N2 billion damages lawsuit against Nigeria's Economic and Financial Crimes Commission (EFCC). The governor, along with the Osun State Attorney General and Accountant General, claims the EFCC unlawfully froze the state's Federal Statutory Allocation Account.

The lawsuit, filed in the Federal High Court in Abuja, names the EFCC, its Chairman, and First Bank Nigeria Limited as defendants. The plaintiffs are seeking a determination from the court on whether the EFCC possesses the lawful authority to freeze or interfere with the Osun State Statutory Account without due process and a valid court order. They cite constitutional provisions and the EFCC Establishment Act in their arguments.

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Whether, having regard to the express provisions of Sections 1, 6, 36, 44 and 162 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended), and Section 34 of the Economic and Financial Crimes Commission Establishment Act, 2004, the 1st and 2nd Defendants possess the lawful authority to freeze, restrict, block, place a ‘post no debit’ order on, or otherwise interfere with the Osun State Statutory Account maintained with the 3rd Defendant, without regard to due process of law?

Specifically, the plaintiffs question the legality of the EFCC's directive to First Bank Nigeria Limited, dated August 5, 2026, which ordered the freezing of the account. They argue that this action was taken in violation of due process and has demonstrably crippled the government's constitutional and statutory obligations to the people of Osun State.

The suit further probes whether the bank breached its duty of care to the Osun State Government by complying with the EFCC's directive without a court order. The plaintiffs are seeking substantial damages for the alleged unlawful actions and their impact on the state's financial operations and ability to serve its citizens.

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Whether, having regard to the effect of the combined express provisions of Section 7(6) of the Money Laundering (Prevention and Prohibition) Act, 2022, and Section 34 of the Economic and Financial Crimes Commission Establishment Act, 2004, and in the absence of an order of a court of competent jurisdiction, this Honourable Court ought not to forthwith set aside the directive given by the 1st Defendant to the 3rd Defendant in a letter dated 5th August 2026 ordering the freezing, restriction, blocking, or placing of a post-no-debit instruction on the Osun State Statutory Account with the 3rd Defendant, given that such action was allegedly taken in violation of due process, and in a manner demonstrably capable of crippling the constitutional and statutory obligations of the Government to the people of Osun State?