The Federal High Court in Lagos has placed a Post No Debit restriction on Osun State Government accounts. Justice Daniel Osiagor granted the interim order on Friday. The restriction covers funds up to $13.9 million and ₦157.5 million. It follows an application by Gamji Nigeria Company Limited. The company is seeking to enforce a $13.9 million arbitration award.
The dispute dates to June 2017. The Osun State Government, then led by Adegboyega Oyetola, awarded Gamji two contracts for water infrastructure in Ilesa West. The projects were funded through an Islamic Development Bank loan. The original contract values were $15.98 million and $9.70 million. Design changes pushed the values to $20.24 million and $10.95 million. Gamji said it completed 93% of the work by October 2023. A Substantial Completion Certificate was issued in November 2024. Disagreements over costs followed. Mediation failed. Arbitration began in April 2025.
The arbitral panel issued its final award on 24 July 2026. It ordered the Osun government to pay $13 million and ₦157.5 million in arbitration fees. The deadline expired on 24 August. Gamji said it received nothing. It approached the court to preserve funds. Justice Osiagor granted the interim order. Affected banks include Guaranty Trust, Access Bank, First HoldCo, Zenith Bank, UBA, Ecobank, Fidelity, Stanbic IBTC, Sterling, Union and Wema. The order is interim. The court adjourned the case to 22 October for hearing.
The timing is sensitive. The EFCC had earlier frozen Osun accounts before the 15 August governorship election. President Tinubu directed the EFCC to unfreeze them. The accounts were released on 22 August. The new restriction is unrelated to that investigation. It is a contractual dispute. But it again puts the state’s finances under judicial lock.
Winners: Gamji Nigeria Company Limited, which gains a preservation order. The court, which enforces arbitration awards. Contractors who rely on arbitration, who gain a precedent. Losers: The Osun State Government, whose accounts are restricted. Governor Ademola Adeleke, who faces another financial constraint. State workers, if salaries are delayed. Contractors and suppliers, if payments stall. Osun residents, if services are disrupted. The EFCC, whose earlier freeze is overshadowed by a separate contractual dispute.
Bottom Line: A court has frozen Osun accounts over an unpaid arbitration award. The state owes $13.9 million for water projects. The contractor completed the work. The state did not pay. Arbitration ruled. The court enforced. The state’s finances are again restricted. The hearing is on 22 October. Osun must pay or negotiate. The law is clear.