Court Restricts Osun Accounts Over $13.9m Award

 

The Federal High Court in Lagos has ordered commercial banks to place a “Post No Debit” restriction on accounts operated by the Osun State Government over a $13.9 million arbitration award in favour of Gamji Nigeria Company Limited.

Justice D.E. Osiagor issued the interim preservation order following an application by Gamji through its counsel, Yunus AbdulSalam, SAN, in suit No. FHC/L/CS/1233/2026.

The company is seeking to preserve $13,924,343.32 and N157.5 million awarded to it following an arbitration dispute arising from water infrastructure projects executed in Ilesa West Local Government Area of Osun State. 

The banks affected by the order include Guaranty Trust Bank, Access Bank, First Bank, Zenith Bank, United Bank for Africa, Ecobank, Fidelity Bank, Stanbic IBTC, Sterling Bank, Union Bank and Wema Bank, among others.

The dispute dates back to two contracts awarded to Gamji by the Osun State Government in June 2017 for water infrastructure projects. An arbitral panel subsequently awarded the company $13,924,343.32 and N157.5 million in reimbursable arbitration fees.

The arbitral award, delivered on July 24, 2026, also reportedly provided for 20 per cent annual interest on any outstanding balance after the expiration of the compliance period. Gamji said the August 24 deadline for compliance expired without payment, prompting it to approach the Federal High Court for preservation and enforcement measures. 

But the matter has now taken another turn. The Osun State Government has filed an application asking the Federal High Court to set aside the restriction order, describing the order as having been obtained through what it called “deceit and substantial non-disclosure of material facts.”

The state government also questioned the validity of the arbitration award and said it had commenced legal steps to protect its interests and seek judicial review of the dispute. 

The case has therefore moved beyond a straightforward debt-enforcement dispute, with the court now expected to consider the competing claims of the company and the Osun State Government. The substantive motion has been adjourned until October 22, 2026, for hearing.