Aug 5, 2026

EFCC Lacks Legal Power to Freeze Osun Statutory Account, Attorney-General Insists

By Afolabi Olaiya Idowu in news

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Osun State Attorney-General and Commissioner for Justice, Oluwole Jimi-Bada, SAN, has firmly rejected the Economic and Financial Crimes Commission’s move to freeze the state’s statutory allocation account, declaring that the agency lacks the legal authority to take such action against government funds.

Speaking to journalists in Osogbo on Wednesday, Jimi-Bada said the Osun State government respects the EFCC’s statutory mandate but insists the laws cited by the commission do not empower it to restrict or interfere with a state government’s statutory account.

He specifically referenced Sections 24 of the Money Laundering (Prevention and Prohibition) Act and 38 of the EFCC Act, 2004, arguing they do not grant unilateral power to freeze such accounts.

The development follows a letter dated August 5, 2026, in which the EFCC directed First Bank to place a Post-No-Debit restriction on the “Osun State Government Statutory Allocation” account (number 2017170947).

The commission said the directive formed part of an ongoing investigation and referenced an earlier correspondence from April 15, 2026.

Governor Ademola Adeleke described the action as taken without a court order and a threat to democratic norms and the constitutional rights of subnational governments.

He said the state received notification from its banker that morning and instructed the Attorney-General to challenge the move at the Federal High Court in Osogbo.

Adeleke linked the timing—just 10 days before the August 15 governorship election—to what he called attempts to paralyse government operations ahead of the poll.

Jimi-Bada emphasized that the statutory account holds public funds meant for salaries, pensions, healthcare, education, security and other essential services.

Any restriction, he said, raises serious constitutional questions that should be determined by a court of competent jurisdiction.

The state remains open to lawful investigations and committed to transparency, he added, while urging residents to remain calm as the matter proceeds through the courts.

In a later press statement, the EFCC defended the freeze. The commission said it has been investigating the Osun State government since March 2026 over alleged fraudulent handling of Ecology Funds, Intervention Funds and FAAC allocations amounting to about N11 billion. Officials, including the Accountant-General, had been interviewed.

The agency claimed the Post-No-Debit order became necessary after it observed large, sudden transfers of funds from the accounts to various corporate entities beginning August 2, 2026.

It described the action as a preventive measure to safeguard public resources and insisted it was non-partisan, noting similar scrutiny of other states.

The episode has heightened political tensions in Osun as the governorship election approaches.

State officials argue the restriction could disrupt essential public services, while the EFCC maintains it acted to stop what it called the pillaging of public funds. The matter is now set for judicial determination.