Osun Disputes Accounts Restriction Over $13.9m Award

The Osun State Government has challenged a Federal High Court order restricting its bank accounts over a $13.9 million arbitration award in favour of Gamji Nigeria Company Limited.

The government said it had filed an application asking the court to vacate the order and allow the dispute over the arbitration award to be properly determined.

The Federal High Court in Lagos had directed several commercial banks to place a “Post No Debit” restriction on accounts operated by the state government. The order covers $13,924,343.32 and N157.5 million awarded to Gamji over water infrastructure projects in Ilesa West Local Government Area.

The dispute arose from two contracts awarded to Gamji in 2017 for water infrastructure projects. The company said disagreements later developed over extensions of time, variations, price adjustments and increased costs of materials and labour.

The matter subsequently went to arbitration, with the panel issuing its final award on July 24, 2026. Gamji said the award directed the Osun Government to pay the dollar-denominated sum and N157.5 million in reimbursable arbitration fees.

The company later approached the Federal High Court after the August 24 deadline for compliance expired without payment.

The court subsequently granted an interim order directing the affected banks to preserve funds in the state government’s accounts pending the determination of Gamji’s application.

However, the Osun Government has disputed the validity of the award and the circumstances surrounding the court order.

The state Commissioner for Information and Public Enlightenment, Kolapo Alimi, said the government’s legal team had already approached the Lagos State High Court to challenge the arbitration award before Gamji sought the Federal High Court order.

Alimi alleged that Gamji failed to disclose the pending legal challenge when it approached the Federal High Court for the account restriction.

He said the state had filed a suit at the Lagos State High Court on September 1 seeking to set aside the award, alongside an application to suspend its enforcement pending the determination of the case.

The government also disputed references to an alleged July 2024 arbitration award, saying the only relevant award against the state was issued in July 2026 and is currently being challenged.

Osun said it would pursue all available legal avenues while refraining from making comments that could prejudice the ongoing proceedings.

The Federal High Court has adjourned the matter until October 22, 2026, for hearing of the motion on notice.