The Osun State Government has sued the Economic and Financial Crimes Commission over the freezing of its statutory allocation account, demanding ₦2 billion in damages.
Governor Ademola Adeleke filed the suit at the Federal High Court in Abuja on Thursday after the EFCC directed First Bank to place a post-no-debit restriction on the account.
Osun Attorney General and Commissioner for Justice Oluwole Jimi-Bada said the state was challenging the action because it was taken without a court order.
“I have the mandate of the governor to proceed to the Federal High Court to challenge this move,” Jimi-Bada said.
“EFCC can investigate the accounts, but it can’t freeze the accounts without an order of court,” he added.
The state government argued that the restriction could disrupt the payment of salaries and other government obligations, while Adeleke accused the anti-graft agency of trying to paralyze government activities ahead of the 15th August governorship election.
“This action was taken without any court order.
"We are supposed to be in a democracy, where the Rule of Law must always prevail,” Adeleke said.
The EFCC, however, said it imposed the restriction after detecting what it described as suspicious transfers from government accounts into different corporate entities.
The commission said it had been investigating alleged mismanagement of about ₦11 billion in Ecology Funds, Intervention Funds and Federal Account Allocation Committee allocations since March.
The EFCC said the restriction was necessary to protect public funds and insisted the investigation was not politically motivated.
“While the Commission is fully aware of the impending governorship election in Osun State, it has a responsibility to act in defence of the sanctity of the funds of the state,” it said.
The dispute has also drawn criticism from lawyers, with the Nigerian Bar Association questioning the legality of the EFCC's action.
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