Osun asks court to lift restrictions on state bank accounts

The Osun State Government has asked the Federal High Court in Lagos to vacate an order restricting its bank accounts over an arbitration award in favour of Gamji Nigeria Company Limited. The contractor is seeking $13.9 million and N157.5 million from the state in connection with water infrastructure projects in Ilesa West Local Government Area. The application was filed on October 2, according to Osun Commissioner for Information and Public Enlightenment Oluomo Kolapo Alimi.

Alimi said the state had already filed a case at the Lagos State High Court on September 1 to set aside the arbitration award. An application was also filed to suspend enforcement while that challenge is considered, he said. The commissioner alleged that Gamji did not disclose the pending proceedings when it approached the Federal High Court for an interim restriction.

The state argues that the order was therefore obtained through non-disclosure of material facts. The Federal High Court had directed commercial banks to place a “Post No Debit” restriction on accounts operated by the state government. The order was issued by Judge Daniel Osiagor after Gamji sought to preserve the amounts pending determination of its motion on notice.

The dispute concerns two contracts awarded in 2017 for transmission mains, booster pump stations and reservoirs. Gamji said the projects were substantially completed and that disagreements over extensions, price adjustments and increased costs led to arbitration. Gamji said the final award was issued on July 24, 2026, after the state allegedly failed to comply with a payment deadline.

Osun disputes the award’s validity and says the arbitration involved irregularities and denied the state fair hearing. The Federal High Court adjourned the case until October 22.