New Twist as Court Places Restriction on Osun Bank Accounts, Details Emerge
- A Lagos Federal High Court issued a Post No Debit order against Osun State Government accounts held across 11 commercial banks
- The order followed an arbitration award of $13.9m and N157.5m granted to Gamji Nigeria Company Limited over water infrastructure contracts
- Gamji told the court the state government missed the August 24, 2026 payment deadline, forcing the company to seek court intervention
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Legit.ng journalist Ridwan Adeola Yusuf has over nine years of experience covering politics, elections, public affairs, and governance in Nigeria and Africa.
Osogbo, Osun State - A Federal High Court sitting in Lagos has ordered multiple commercial banks to freeze all accounts belonging to the Osun State Government, blocking withdrawals until a $13.9m arbitration award in favour of Gamji Nigeria Company Limited is settled.
As reported on Sunday, October 4, by The Punch, Justice D.E. Osiagor issued the interim order on an application brought by Gamji through its counsel, Yunus AbdulSalam (SAN), in suit FHC/L/CS/1233/2026. A certified true copy of the ruling was obtained on Saturday, October 3.
Source: Instagram
The banks named in 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.
Each institution is directed to immediately place a Post No Debit restriction on any Osun State Government account in its custody.
Osun government faces water dispute
The case traces back to June 2017, when the Ademola Adeleke-led Osun State Government awarded Gamji two contracts for water infrastructure works in Ilesa West Local Government Area. The projects covered the construction of transmission mains and booster pump stations under Slot 1, and water reservoirs under Slot 2, as part of a water supply and sanitation initiative funded through an Islamic Development Bank loan facilitated by the Federal Ministry of Finance.
Original contract values stood at $15.98m for Slot 1 and $9.70m for Slot 2. Engineering design changes and scope variations later pushed those figures to $20.24m and $10.95m respectively. Gamji said 93 per cent of the work had been completed by October 2023, and the state government issued a Substantial Completion Certificate on November 14, 2024.
Disputes then emerged over claims for time extensions, price adjustments, and rising material and labour costs. The state government rejected Gamji's claims, mediation efforts failed, and an arbitration notice was issued on April 3, 2025. The state government accepted the process and nominated its arbitrator, with preliminary proceedings held in Lagos on May 15, 2025.
Source: Twitter
Osun accounts frozen over arbitration award
The arbitral panel delivered its final award on July 24, 2026, directing the Osun State Government to pay $13,924,343.32 and N157.5m in reimbursable arbitration fees, with 20 per cent annual interest on any unpaid balance after the compliance window closed. That deadline passed on August 24, 2026, without any payment, prompting Gamji to approach the Federal High Court.
In granting the application, Justice Osiagor directed the listed banks to act immediately, preserving funds in the state government's accounts up to the full value of the award.
"A preservation order of interim injunction is granted directing the cited financial institutions in Nigeria to immediately place a Post No Debit restriction on the Respondent's account domiciled with them for the preservation of the funds with them in the sum of $13,924,343.32 and N157,500,000.00 towards the liquidation of the Arbitral Award dated 24th July, 2026 which has become due and enforceable, pending the hearing and determination of the motion on notice," the court order read in part.
The suit has been adjourned to October 22, 2026, for a hearing on the motion on notice.
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Osun debunks LG salary withholding claims
Legit.ng earlier reported that the Osun government rejected claims that local government (LG) workers in the state were not receiving their salaries, describing the narrative as inaccurate and misleading.
In a post on its official page on X (formerly Twitter), the Adeleke administration said the issue being discussed publicly does not reflect the reality of salary administration across the councils.
Source: Legit.ng
