Osun State Governor Ademola Adeleke has filed a ₦2 billion lawsuit against the EFCC and First Bank over the restriction placed on the state’s statutory allocation account.
OSOGBO — Osun State Governor Ademola Adeleke has taken legal action against the Economic and Financial Crimes Commission (EFCC) and First Bank of Nigeria over the freezing of the state government’s Federal Statutory Allocation Account.
Adeleke is seeking ₦2 billion in damages over what the Osun State Government described as an unlawful restriction of its access to public funds.
The lawsuit was filed amid a growing dispute between the state government and the anti-graft agency over the account freeze, which came just days before the August 15 governorship election.
According to reports, the Osun Government is challenging the legality of the restriction and asking the court to determine whether the EFCC and First Bank could lawfully prevent the state from accessing its statutory allocation account.
The state government has argued that the restriction amounted to an unlawful interference with its financial operations and constitutional responsibilities.
The legal action names the EFCC and First Bank as defendants, with the state seeking declarations and damages over the account restriction.
EFCC ACCOUNT FREEZE
The EFCC had earlier directed First Bank to place a post-no-debit restriction on the Osun State Government’s statutory allocation account as part of an investigation into alleged financial irregularities.
The commission said the investigation relates to suspected mismanagement of public funds, including allegations involving about ₦11 billion.
The Osun Government, however, rejected the allegations and questioned the timing and legality of the restriction, particularly because the state was approaching a governorship election.
TINUBU INTERVENES
The dispute took another turn after President Bola Ahmed Tinubu directed the EFCC to return to court and seek the vacation of the order freezing the state government’s account.
Tinubu said he was concerned that the timing of the EFCC’s action could create an impression that federal agencies were being used to interfere with the electoral process.
The President said the government had a responsibility to protect public confidence in the integrity and fairness of the democratic process.
The development has now moved the dispute into the courts, with the Adeleke administration seeking legal redress over the account restriction.
WHAT TO KNOW
The case comes at a politically sensitive moment in Osun State, with the governorship election scheduled for August 15.
The legal dispute over the account freeze has therefore become intertwined with wider concerns about the independence of anti-corruption agencies, the rule of law and the conduct of elections.