The Osun State Government has dragged the Economic and Financial Crimes Commission (EFCC) before the Federal High Court in Abuja, challenging the freezing of its statutory allocation account and seeking N2 billion in exemplary damages.

In the suit marked FHC/ABJ/CS/1762/2026, filed on August 5, Governor Ademola Adeleke, the state's Attorney-General and Accountant-General are asking the court to declare the EFCC's action unlawful and unconstitutional.

The defendants in the suit are the EFCC, its Executive Chairman and First Bank of Nigeria Limited

The plaintiffs are asking the court to determine whether the anti-graft agency has the legal authority to freeze, restrict or place a post-no-debit order on a state's statutory allocation account without first obtaining a valid court order.

They also want the court to rule on whether the EFCC's directive to First Bank to freeze the account, without prior or concurrent judicial authorisation, amounts to executive lawlessness, abuse of statutory powers, suppression of Osun State's constitutional functions, and a violation of due process, the rule of law and the financial autonomy of a federating state.

According to the originating summons, the EFCC, through a letter dated August 5, 2026, directed First Bank to freeze the state's statutory allocation account.

The Osun Government argued that neither the EFCC nor the bank has the legal power to freeze or restrict access to the account without a subsisting order of a competent court.

Among the reliefs sought, the plaintiffs are asking the court to declare the freezing of the account unconstitutional, null and void, and to affirm that the EFCC must act strictly within the provisions of the Constitution and the EFCC Establishment Act.

The state is also seeking an order nullifying the freeze, perpetual injunctions restraining the EFCC and the bank from interfering with the account without judicial approval, and N2 billion in exemplary and aggravated damages for what it described as unlawful interference with public funds.

The legal action followed the EFCC's announcement on Wednesday that it froze the state's accounts as part of an investigation into the alleged fraudulent handling of public funds.

The commission said it had been probing the state government since March and had questioned some officials, including the Accountant-General.

It also alleged that investigators observed large transfers from the accounts into various corporate entities beginning August 2.

However, Osun State Commissioner for Information and Public Enlightenment, Kolapo Alimi, rejected the EFCC's explanation, describing it as an attempt to justify an illegal action.

He alleged that the accounts were frozen to prevent the payment of palliatives promised to workers ahead of the governorship election.

The development came amid heightened political tension in Osun ahead of the August 15 governorship election.

On Thursday, President Bola Tinubu directed the EFCC to immediately vacate the freeze order on the state's accounts.

In a statement, the President said he was embarrassed by the development because actions taken by federal agencies are often attributed to the Presidency, even when he has no prior knowledge of them.

While noting that the EFCC acted within its statutory powers by obtaining a court order, Tinubu said the timing of the action, coming days before the governorship election, was inappropriate.

He consequently directed the anti-graft agency to return to court immediately to vacate the freezing order and discontinue the action.