The anti-graft agency took the action ten days to the state’s governorship election.
Governor Ademola Adeleke of the Accord party is contesting against two major candidates: Munirudeen Bola Oyebamiji of the All Progressives Congress (APC) and Najeem Salaam of the African Democratic Congress (ADC).
Adeleke, who addressed journalists in Osogbo, the state capital, alleged that the development was part of the sustained campaign of intimidation against his administration.
He said the state government was officially notified by its banker, First Bank of Nigeria, that the EFCC had directed the bank to place a ‘Post No Debit’ (PND) restriction on the state’s statutory allocation account.
The EFCC’s correspondence, referenced 3000/EFCC/ABJ/HQ/PFS/TA/OSUN/VOL.17/666, identified the affected account as the Osun State Government Statutory Allocation Account, domiciled with First Bank.
The commission stated that the action followed an earlier communication dated April 15, 2026, relating to an ongoing investigation.
However, the state government said the action lacked legal backing because it was allegedly carried out without a court order.
Adeleke had, on Monday, accused the APC of planning to rig the August 15 election, calling on President Bola Ahmed Tinubu to intervene in the killings in the state.
But the state chapter of the APC had, in a statement signed by its Director of Media and Information, Mogaji Kola Olabisi, described the governor’s allegations as unfounded and urged him to focus on issues surrounding the forthcoming election.
Governor Adeleke yesterday said the freezing of the account was unconstitutional because no court order was obtained before the directive was issued.
‘This morning, we received a letter from our banker forwarding a letter from the EFCC instructing the bank to freeze the Osun State Government Account.
‘This action was taken without any court order. We are supposed to be in a democracy where the rule of law must always prevail,’ he said.
He cautioned that allowing federal agencies to freeze state government accounts without judicial approval would amount to an erosion of constitutional democracy.
According to him, the action represents a dangerous precedent capable of undermining Nigeria’s federal structure.
‘We will therefore not accept a situation where federal agencies trample on the constitutional rights of sub-national governments. This is a threat to our democracy. If we all keep quiet and allow this illegality, very soon whatever is left of our democracy will be fully eroded.’
The governor called on the chairman of the EFCC, Ola Olukoyede, to publicly explain the reasons for freezing the state’s account and provide evidence supporting the decision.
Govt heads to court
Governor Adeleke said he had instructed the state’s Attorney-General and Commissioner for Justice to institute legal proceedings at the Federal High Court in Osogbo.
The governor expressed confidence that the judiciary would determine the legality of the EFCC’s decision.
He also dismissed suggestions that the freezing of government accounts would derail his administration or affect his re-election campaign.
‘As for me, we are pushing ahead with our campaign,’ he declared.
Also speaking to journalists in Osogbo yesterday, the Osun State Attorney-General and Commissioner for Justice, Oluwole Jimi-Bada (SAN), said the EFCC lacks constitutional authority to freeze a state’s statutory allocation account.
According to him, while the state government respects the statutory responsibilities of the EFCC and other government institutions, the agency’s powers must remain within the limits prescribed by law.
‘This statement is not intended as an attack on any person, government, agency or political party. It is purely a legal position taken in the interest of constitutional order and due process,’ he said.
He said the provisions of Section 24 of the Money Laundering (Prevention and Prohibition) Act and Section 38 of the EFCC Act, 2004, which are frequently cited by the commission, do not empower it to freeze or interfere with the statutory allocation account of a state government.
He argued that such accounts contain constitutionally protected public funds meant for governance and the delivery of essential services.
‘The statutory account of Osun State contains public funds meant for governance, salaries, pension, healthcare, education, security and other essential obligations to the people.
‘Any restriction on such funds raises serious constitutional questions which, in our view, should be determined by a court of competent jurisdiction,’ he said.
On his part, the state’s Commissioner for Finance, Sola Ogungbile, alleged that police operatives stormed the main branch of First Bank in Osogbo and arrested members of staff.
He alleged that the arrest was part of the wider pressure being mounted against the state government.
Ogungbile also debunked the allegations that state resources were being diverted for political campaigns, saying Governor Adeleke was not using public funds to prosecute his re-election bid. He urged the EFCC to consider the broader implications of its action on the people of Osun State.
We acted to halt looting – EFCC
The EFCC on Wednesday explained that the state government’s account was frozen to save public funds from being looted.
The commission, in a statement by its spokesman, Dele Oyewale, said it had been investigating many government officials in the State since March.
He said some officials of the state had earlier been quizzed by investigators of the commission, saying what precipitated the freezing was unwarranted movement of funds from the accounts to different suspicious accounts since August 2, 2026.
He stated: ‘The Economic and Financial Crimes Commission is compelled to publicly address issues pertaining to its preventive moves in freezing the bank account of the Osun State government, without prejudice to the imminent governorship election in the state.
‘The Commission has been busy investigating the Osun State government since March, 2026, regarding alleged fraudulent handling of Ecology Funds, Intervention Funds and Federal Account Allocation Committee, FAAC account to the tune of N11,000,000,000 only.
‘To this end, some officials of the state government, especially the Accountant General of the State, have had interview sessions with investigators of the EFCC.’
Oyewale said the EFCC noticed huge transfers of funds into different corporate entities and had to swiftly halt the trend by freezing the accounts from which such heavy funds are being moved.
He stated: ‘These ongoing investigations of the state government would not have warranted any placement of Post No Debit order on its account but for the precipitate and unwarranted movement of funds from the accounts to different suspicious accounts since August 2, 2026.
‘The Commission noticed huge transfers of funds into different corporate entities and had to swiftly halt the trend by freezing the accounts from which such heavy funds are being moved.
‘The EFCC’s preventive mandate is a public-inclined framework of safeguarding public funds, assets and resources. The Commission cannot watch idly while a state government’s account is being pillaged.
‘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 will be uncharitable for the Commission to allow an excuse of an upcoming election to fold its arms to perform its legally-assigned functions. It is equally needful to state that the Commission is keeping watch over the finances of other states like Osun State.
‘Many of these states are on the investigative radar of the Commission to ensure accountability and probity. The Commission has always pointed out that it is non-partisan and non-sectarian but always working in the overall interests of Nigerians.
‘The Osun State government account was frozen to save public funds from being looted. The public is enjoined to ignore false narratives and deliberate demonization of the works of the EFCC. The interests of all Nigerians are greater and will always be protected by the Commission.’
It violates principles of federalism – Lawyer
In an interview with one of our correspondents, a constitutional lawyer, Basil Kpenkpen, described the freezing of the state government’s account as an arbitrary exercise of power in a constitutional democracy ultra vires the 1999 Constitution.
He noted that the state’s account holds public funds meant for essential services like payment of salaries and projects.
‘States’ accounts hold public funds meant for the State for essential services like payment of salaries, projects etc. The said action also violates the principle of federalism,’ he argued.
A Senior Advocate of Nigeria, John Baiyeshea, who also spoke to Daily Trust, said the court should be allowed to handle the matter since the government has taken the case to court.
‘Since the state government has gone to court, we just wait and see how the matter will play out in court. I know the case will generate a lot of interest. The court is there to ensure that they maintain balance at all times,’ he said.
A political scientist, Prof. Sylvester Odion, warned the APC against using the state’s institution to muzzle the opposing political parties.
‘Let the people of Osun decide who becomes their next governor. It is unfair to begin to use state instrumentality to muzzle the opposition. We have over 19 political parties in the state. The federal government should create a level playing field for all political parties.
‘It will rebound to the positive image of the incumbent administration in Nigeria. It shouldn’t be that the ruling party must control every state of the federation,’ he said.
It is political terrorism – ADC
The African Democratic Congress (ADC), in its reaction, condemned the freezing of statutory allocations and bank accounts linked to the Osun State Government, describing the development as ‘political terrorism’ and an assault on democracy.
It accused the federal government of using state institutions to intimidate the Osun State Government and allegedly influence the outcome of the August 15 governorship election.
In a statement issued on Wednesday by its National Publicity Secretary, Mallam Bolaji Abdullahi, the ADC alleged that the withholding of funds was part of a broader strategy to weaken the state government and frustrate its operations ahead of the governorship poll.
The party linked the development to what it described as President Bola Tinubu’s ‘win-at-all-cost’ approach to politics, warning that such a mentality could threaten Nigeria’s democracy and national stability.
According to the ADC, restricting the funds could affect the payment of workers’ salaries, the operation of primary healthcare centres, education, rural infrastructure and other essential public services.
‘The freezing of the statutory allocations due to the local governments of Osun State is not an administrative decision or a legal dispute. It is political terrorism by the Bola Tinubu-led APC government carried out with the instruments of the Nigerian state in order to undermine the state government ahead of the coming governorship election,’ the statement read.
The party alleged that the withholding of the allocations was only one aspect of what it described as a systematic campaign against the Osun State Government.
It also accused unelected APC loyalists of continuing to occupy local government councils in the state, alleging that their continued presence was contrary to democratic principles and the rule of law.
The ADC further alleged that opposition politicians, including members of the Accord Party, had been subjected to arbitrary arrests for political reasons.
It accused security agencies of failing to address alleged acts of violence by political thugs in the state.
The party alleged that some armed groups linked to the APC had intimidated political opponents, while accusing some elements within the Nigeria police of providing protection to the groups.
The opposition party argued that the developments pointed to what it described as a deliberate attempt by federal authorities to undermine constitutional governance and democratic institutions in Osun State.