The Osun State Government has commenced plans to challenge the Economic and Financial Crimes Commission over the freezing of its accounts, describing the action as unlawful and capable of disrupting government activities.
The state Attorney General and Commissioner for Justice, Oluwole Jimi-Bada, SAN, said on Wednesday that he had received the mandate of Governor Ademola Adeleke to approach the Federal High Court and challenge the decision of the anti-graft agency.
Jimi-Bada said the EFCC had sent a Post No Debit instruction to the management of First Bank, where some of the state government’s accounts are domiciled.
A Post No Debit order prevents withdrawals and other debit transactions from an account while allowing credits to be made.
The commissioner said the state government would challenge the EFCC’s action because, according to him, the commission could investigate government accounts but could not freeze them without first obtaining a court order.
“I have the mandate of the governor to proceed to the Federal High Court to challenge this move. EFCC can investigate the accounts but it can’t freeze the accounts without order of court,” Jimi-Bada said.
He warned that the restriction could affect the ability of the government to carry out its normal responsibilities and provide services to residents.
“This step will affect government running but we will challenge the move and ensure that the agency acts within the ambit of the law,” he added.
The development has created a fresh dispute between the Osun State Government and the EFCC, coming just days before the August 15 governorship election in the state.
The state Commissioner for Finance, Sola Ogungbile, also criticised the action, saying it could have serious consequences for the people of Osun.
Ogungbile alleged that police operatives had stormed the main branch of First Bank in Osogbo and arrested some members of staff.
He did not provide further details about the alleged arrests or explain the circumstances surrounding the incident.
The commissioner also rejected any suggestion that the state government was using public funds to finance Adeleke’s campaign for a second term.
He urged the EFCC to consider the possible effect of the account restriction on the day-to-day running of government and the welfare of residents.
The state government’s position is that freezing its accounts shortly before the governorship election could disrupt the payment of salaries, contractors and other obligations, as well as the delivery of essential services.
Earlier on Wednesday, Governor Adeleke had raised the alarm over what he described as a plan by the EFCC to freeze all accounts belonging to the Osun State Government.
In a statement issued by the state Commissioner for Information and Public Enlightenment, Kolapo Alimi, Adeleke also alleged that the anti-graft agency was planning to freeze the accounts of senior government officials.
The governor described such a move as an abuse of power if it was carried out without proper legal backing.
He said the alleged plan was designed to paralyse government activities ahead of the August 15 governorship election.
“The plot to freeze the state government accounts is meant to paralyze government activities ahead of the August 15th governorship election,” Adeleke said.
The latest development is part of a wider disagreement between the state government and the EFCC over the agency’s investigation into the financial affairs of the state.
The anti-graft agency had earlier explained that its investigation was focused on about N11bn in Ecology Funds, Intervention Funds and allocations from the Federation Account Allocation Committee.
The EFCC said the investigation began in March 2026 and that some state officials, including the Accountant General, had already been questioned.
The commission also said the investigation alone did not lead to the freezing of the accounts.
According to the EFCC, it took the step after allegedly detecting what it described as suspicious movement of large sums of money from the state government’s accounts to various corporate entities from August 2.
The commission said it had to act quickly to prevent the alleged diversion of public funds.
The EFCC maintained that it had a duty to protect public resources and could not stop its work simply because a governorship election was approaching.
The agency also said Osun was not the only state whose finances were under investigation, stressing that it was monitoring the finances of several states as part of efforts to promote accountability.
However, the Osun State Government has rejected the EFCC’s explanation and is insisting that the commission must operate within the law.
The planned court action is expected to centre on whether the EFCC had the legal authority to place a Post No Debit restriction on the state government’s accounts without first obtaining a court order.
The case could also determine whether the restrictions should remain in place while the EFCC investigation continues.
The timing of the dispute has added to its political significance because Osun is preparing for its governorship election on August 15.
Adeleke, who is seeking re-election on the platform of the Peoples Democratic Party, is facing a strong challenge from the opposition, particularly the All Progressives Congress.
The governor has repeatedly accused opposition forces of plotting to undermine his administration, while the opposition has rejected such claims.
The EFCC has, however, denied acting for political reasons and has maintained that its responsibility is to protect public funds.
The commission has also urged Nigerians to disregard what it called false narratives and attempts to portray its activities as politically motivated.
With the state government now preparing to approach the Federal High Court, the dispute is set to move from public statements to the courtroom.
The outcome of the legal battle could determine whether the EFCC will be allowed to maintain the restriction on the accounts while its investigation continues or whether the state government will regain full access to its funds.
For residents of Osun, the immediate concern is whether the dispute will affect the normal running of government in the days leading to the governorship election.
The state government has warned that continued restrictions could hamper its operations, while the EFCC insists that protecting public funds remains its priority.