Osun State Governor, Ademola Adeleke, 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, filed before the Federal High Court in Abuja, also lists the Attorney-General of Osun State and the state’s Accountant-General as co-plaintiffs. The defendants include the EFCC, its Chairman, and First Bank Nigeria Limited.
At the centre of the legal dispute is the EFCC’s August 5, 2026 directive instructing First Bank to place a Post-No-Debit restriction on account number 2017170947, which receives Osun State’s statutory allocations.
Represented by a legal team led by Senior Advocate of Nigeria (SAN), M. T. Adekilekun, the plaintiffs argued that the anti-graft agency acted outside the law by issuing the restriction without first obtaining a valid court order. They maintained that the action violated constitutional provisions, undermined the state’s financial autonomy, and threatened its ability to carry out essential government functions.
The Osun Government is asking the court to declare the EFCC’s action unconstitutional, unlawful and beyond its statutory powers. It is also seeking an order nullifying the Post-No-Debit directive and compelling First Bank to immediately remove all restrictions on the account.
According to the suit, the plaintiffs contend that the EFCC lacks the authority to freeze or restrict a state’s statutory allocation account without complying with due process as provided under the 1999 Constitution, the EFCC Establishment Act and the Money Laundering (Prevention and Prohibition) Act.
The state further argued that First Bank failed in its duty of care by acting on the EFCC’s administrative letter without insisting on a valid court order. It warned that the restriction could disrupt salary payments, government programmes and other constitutional obligations owed to residents.
Among the reliefs sought is a perpetual injunction restraining the EFCC and its Chairman from interfering with Osun State’s accounts without following due legal procedures. The plaintiffs also want the court to prevent First Bank from implementing similar directives unless they are backed by lawful court orders.
In addition to requesting the immediate restoration of access to the account, the Osun Government is demanding ₦2 billion in exemplary and aggravated damages for what it described as unlawful interference with public funds, as well as the cost of the legal proceedings.
The lawsuit follows the EFCC’s confirmation that it restricted the account as part of an ongoing investigation into the alleged mismanagement of about ₦11 billion in Ecology Funds, Intervention Funds and Federal Account Allocation Committee (FAAC) allocations.
The anti-graft agency said its investigation began in March 2026 and claimed it detected suspicious transfers from the account into several corporate accounts from August 2. It insisted the restriction was necessary to prevent the alleged diversion of public funds and denied claims that the move was politically motivated ahead of the August 15 Osun governorship election.
Governor Adeleke, however, dismissed the EFCC’s explanation, describing the action as unconstitutional and questioning its timing, given the approaching election.
The legal action came shortly after President Bola Tinubu directed the EFCC to take the necessary legal steps to facilitate the lifting of the restriction on the state’s account.
In a statement issued on Thursday, the President expressed concern over the timing of the agency’s action, saying he was embarrassed by the development despite acknowledging the EFCC’s statutory responsibility to investigate financial crimes.
Tinubu subsequently instructed the commission to approach the appropriate court and initiate the required legal process to restore Osun State’s access to its statutory allocation account.