Court Restricts Osun Government Bank Accounts Over $13.9m Award

A 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 a $13.9 million arbitration award in favour of Gamji Nigeria Company Limited.

Justice Osiagor issued the interim order directing the affected financial institutions to preserve funds in the state government’s accounts pending the hearing and determination of a motion on notice.

The order covers $13,924,343.32 and N157.5 million, which the court said were required towards the liquidation of the arbitral award dated July 24, 2026.

The court directed the banks to immediately restrict withdrawals from the accounts to preserve the funds pending further proceedings.

The order followed an application concerning the arbitration award in favour of Gamji Nigeria Company Limited, which had become due and enforceable.

The restriction means the affected accounts cannot be debited to the extent covered by the preservation order while the court considers the substantive application.

The case remains before the Federal High Court in Lagos, with further proceedings expected to determine the parties’ respective positions on the award and its enforcement.

The development comes amid ongoing legal and administrative disputes involving the finances of the Osun State Government.