Osun Govt Files N2 Billion Suit Against EFCC Over Alleged Unlawful Freezing Of Statutory Account

The Government of Osun State on Thursday slammed a N2 billion suit against the Economic and Financial Crimes Commission (EFCC) for the alleged unlawful freezing of its Federal Statutory Allocation Account.

The suit, marked FHC/ABJ/CS/1762/2026, also listed the Attorney General of Osun State and the Accountant General of the state as the 2nd and 3rd plaintiffs, respectively.

Joined as 1st to 3rd defendants in the suit filed at the Abuja Division of the Federal High Court by Prof. M. T. Adekilekun, SAN, are the EFCC, its Chairman, and First Bank Nigeria Limited.

The state government sought the determination of the following questions:

“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?

“Whether, having regard to 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, 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 Government Federal Statutory Allocation Account, Number 2017170947, maintained with the 3rd Defendant, without first obtaining and serving a valid, subsisting, and specific order of a court of competent jurisdiction?

“Whether, having regard to 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, the directive of the 1st Defendant to the 3rd Defendant ordering the freezing or restriction of the Osun State Statutory Account No. 2017170947, maintained with the 3rd Defendant, vide its letter with Reference No. CR:3000/EFCC/ABJ/HQ/PFS/TA/OSUN/VOL.17/666 dated 5th August 2026 and authored by ACE I Adenike S. Babalola (for: Director, Investigation), without any prior or concurrent court order sought, obtained and served on the 3rd Defendant, does not constitute an egregious act of executive lawlessness, an unlawful resort to self-help, a flagrant abuse of statutory powers, an unlawful suppression of the constitutional powers and functions of the Plaintiffs, a threat to the constitutional and corporate existence of Osun State, a brazen and unlawful denial of the democratic rights and dividends of the people of Osun State, and a direct violation of the fundamental constitutional principles of due process, the rule of law, and the financial autonomy of a federating unit?

“Whether, having regard to 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, the 3rd Defendant, being the banker to the Government of Osun State in respect of the said statutory account, can lawfully freeze or continue to freeze, restrict, block, or deny the Government of Osun State unrestricted access to the said account merely upon an administrative directive, letter, request, instruction, or communication from the 1st and/or 2nd Defendants in the manner done herein, in the absence of a valid, subsisting, and specific order of a court of competent jurisdiction?

“Whether, having regard to 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?”

Upon determination of the questions, the plaintiffs, among other things, urged the court to declare the actions of the defendants with respect to the Osun State account as “unlawful, unconstitutional, ultra vires their powers, null and void, and of no effect whatsoever.”

The state further sought the following reliefs:

“An order setting aside, vacating, and nullifying the freezing, restriction, blocking, post-no-debit instruction, or any other restraint placed on the Osun State Statutory Account maintained with the 3rd Defendant vide its letter with Reference No. CR:3000/EFCC/ABJ/HQ/PFS/TA/OSUN/VOL.17/666 dated 5th August 2026 and authored by ACE I Adenike S. Babalola (for: Director, Investigation), for being unlawful, unconstitutional, and without legal basis.

“An order mandating the 3rd Defendant to forthwith unfreeze, unblock, and remove all restrictions, and to allow the Government of Osun State immediate and unrestricted access to and operation of the said Osun State Statutory Account.

“An order of perpetual injunction restraining the 1st and 2nd Defendants, whether by themselves, their officers, agents, servants, privies, or any person acting on their behalf, from freezing, restricting, blocking, placing a post-no-debit instruction on, or otherwise interfering with the Osun State Statutory Account or any other account of the Government of Osun State without due process of the law.

“An order of perpetual injunction restraining the 3rd Defendant, whether by itself, its officers, agents, servants, privies, or any person acting on its behalf, from acting on any directive, letter, instruction, or request from the 1st and/or 2nd Defendants to freeze, restrict, block, or deny access to the Osun State Statutory Account, except in the manner stipulated by law.”

They also prayed the court to award N2 billion against the defendants to serve as “exemplary and aggravated damages for the unlawful interference with public funds,” as well as an order directing the defendants to pay the costs of the litigation.

No date has been fixed for the hearing of the suit.