Court places restriction on Osun bank accounts
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 an outstanding $13.9 million arbitration award.
Justice D.E. Osiagor issued the interim preservation order in suit No. FHC/L/CS/1233/2026 following an application by Gamji Nigeria Company Limited through its counsel, Yunus AbdulSalam, SAN.
Gamji is seeking to preserve $13,924,343.32 and N157.5 million awarded to it by an arbitration panel over water infrastructure projects in Ilesa West Local Government Area.
Banks affected include GTBank, Access Bank, First Bank, Zenith Bank, UBA, Ecobank, Fidelity Bank, Stanbic IBTC, Sterling Bank, Union Bank and Wema Bank, among others.
According to court papers, the dispute arose from two contracts awarded to Gamji by Osun State Government in June 2017 for construction of transmission mains, booster pump stations under Slot 1, and water reservoirs under Slot 2, as part of a water supply and sanitation project. The project was funded through an Islamic Development Bank loan facilitated by the Federal Ministry of Finance.
The original values were $15.98 million for Slot 1 and $9.70 million for Slot 2, but Gamji said engineering design changes and scope variations pushed the values to $20.24 million and $10.95 million respectively.
The company said it had completed 93 percent of the work by October 2023 and got a Substantial Completion Certificate on November 14, 2024, but disputes over extension of time and price adjustments led to arbitration.
The panel awarded the sum on July 24, 2026, with 20 percent annual interest after August 24, 2026.
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