Osun Government Sues EFCC, First Bank Over Frozen Allocation Account, Seeks ₦2bn Damages
Osun State Governor Ademola Adeleke, alongside the state Attorney-General and Accountant-General, has instituted a ₦2 billion lawsuit against the Economic and Financial Crimes Commission (EFCC) and First Bank Nigeria Limited over the restriction placed on the state’s Federal Statutory Allocation Account.
The suit, marked FHC/ABJ/CS/1762/2026, was filed before the Federal High Court in Abuja by a legal team led by Professor M. T. Adekilekun (SAN).
Named as defendants are the EFCC, its Chairman, Ola Olukoyede, and First Bank Nigeria Limited, the financial institution maintaining the affected statutory allocation account.
The plaintiffs are challenging the legality of the post-no-debit restriction imposed on Osun State Government’s Federal Statutory Allocation Account No. 2017170947 through an EFCC letter dated August 5, 2026. The directive, referenced CR:3000/EFCC/ABJ/HQ/PFS/TA/OSUN/VOL.17/666, was signed by ACE I Adenike S. Babalola on behalf of the Director of Investigation.
According to the plaintiffs, the EFCC acted outside its statutory powers by freezing and restricting the account without first complying with constitutional and legal procedures governing such actions. They argue that the commission failed to obtain and serve a valid order from a court of competent jurisdiction before directing the restriction.
The suit asks the court to determine whether the EFCC and its chairman can lawfully place a post-no-debit restriction on a state government’s statutory allocation account without prior judicial authorisation.
In support of their case, the plaintiffs rely on Sections 1, 6, 36, 44 and 162 of the 1999 Constitution, Section 34 of the Economic and Financial Crimes Commission (Establishment) Act, and Section 7(6) of the Money Laundering (Prevention and Prohibition) Act, 2022.
They contend that the restriction amounts to unlawful self-help, an abuse of statutory authority and an infringement on Osun State’s constitutional and financial autonomy. They further argue that denying the state access to its statutory allocation could severely hamper its ability to pay workers’ salaries, execute development projects and fulfil its constitutional responsibilities to residents.
The plaintiffs also question First Bank’s decision to maintain the restriction, arguing that the bank had a duty of care to ensure the EFCC’s directive was backed by a valid and subsisting court order before denying the state access to public funds.
They are asking the court to declare the restriction unlawful, unconstitutional, ultra vires, null and void, and to set aside the EFCC’s August 5 post-no-debit instruction.
In addition, the plaintiffs seek an order compelling First Bank to immediately lift all restrictions on the account and restore the Osun State Government’s unrestricted access to the funds.
The suit further requests a perpetual injunction restraining the EFCC, its chairman, officers and agents from freezing or interfering with the statutory allocation account or any other Osun State Government account without following due legal process. It also seeks to prevent First Bank from acting on any future administrative directives from the EFCC to restrict the state’s accounts unless such directives comply with the law.
Beyond the declaratory and injunctive reliefs, the plaintiffs are demanding ₦2 billion in exemplary and aggravated damages for what they describe as unlawful interference with public funds, in addition to the cost of prosecuting the case.
The lawsuit comes amid controversy surrounding the EFCC’s ongoing investigation into the alleged handling of Ecology Funds, Intervention Funds and Federation Account Allocation Committee (FAAC) receipts totalling about ₦11 billion.
The anti-graft agency had maintained that the restriction became necessary after investigators allegedly detected sudden and suspicious transfers from government accounts into several corporate entities beginning on August 2. The allegations remain under investigation and have not been determined by any court.
Meanwhile, President Bola Tinubu has directed the EFCC to approach the court to seek the vacation of the freezing order, stating that he was embarrassed by the timing of the action so close to the Osun State governorship election.
The Presidency’s reference to a court order suggests that judicial authorisation may have been obtained after the initial restriction. However, the Osun State Government’s suit specifically challenges the legality of the EFCC’s original August 5 administrative directive and the circumstances surrounding the restriction of the account.
No date has been fixed for the hearing of the suit, while the defendants are yet to file or publicly disclose their responses to the claims.
