Court orders restriction on Osun government bank accounts over $13.9m award

The Federal High Court in Lagos has ordered commercial banks to restrict withdrawals from accounts operated by the Osun State Government over an arbitration award worth $13.9m and N157.5m. Justice D.E. Osiagor issued the interim preservation order after Gamji Nigeria Company Limited applied through its counsel, Yunus AbdulSalam, SAN.

The case is marked FHC/L/CS/1233/2026. The order directs listed banks, including 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, to place a Post No Debit restriction on the relevant accounts. Gamji is seeking to preserve $13,924,343.32 and N157.5m awarded after arbitration arising from water infrastructure contracts in Ilesa West Local Government Area of Osun State.

According to the company’s affidavit, the state awarded it two contracts in June 2017. One covered transmission mains and booster pump stations, while the other involved water reservoirs. The projects formed part of a water supply and sanitation scheme funded through an Islamic Development Bank loan facilitated by the Federal Ministry of Finance.

Gamji said design changes and variations increased the contract values. It claimed that 93 per cent of the work had been completed by October 2023 and that the state issued a Substantial Completion Certificate in November 2024. Disputes later arose over extensions, price adjustments and increased material and labour costs.

An arbitral panel issued its final award on July 24, 2026, including 20 per cent annual interest on unpaid sums after the compliance period. Gamji said the deadline expired without payment. The court ordered preservation of the funds pending the hearing of the motion on notice and adjourned the case to October 22, 2026.