🎧
Listen to this article
Commercial bank accounts belonging to the Osun State Government have once again been placed under restriction, coming weeks after the Economic and Financial Crimes Commission (EFCC) unfreezed the state’s accounts following President Bola Tinubu’s intervention.
The latest restriction follows an interim order issued by Justice Daniel Osiagor of the Federal High Court in Lagos in a suit marked FHC/L/CS/1233/2026, filed by Gamji Nigeria Company Limited to preserve funds over a $13.9 million arbitration award tied to water infrastructure projects in Ilesa West Local Government Area.
Justice Osiagor ordered commercial banks—including Guaranty Trust Bank, Access Bank, First HoldCo, Zenith Bank, United Bank for Africa, Ecobank, Fidelity Bank, Stanbic IBTC, Sterling Bank, Union Bank, and Wema Bank—to place a “Post No Debit” restriction on the state’s accounts up to $13.9 million and ₦157.5 million, pending the hearing and determination of Gamji’s motion on notice.
“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 order read in part.
The court action comes months after an earlier EFCC freeze on Osun accounts during the lead-up to the August 15 governorship election, where the anti-graft agency investigated the alleged handling of ₦11 billion in Ecology and FAAC allocations.
President Tinubu had instructed the EFCC to vacate that earlier restriction to prevent perceived federal interference in the election, resulting in the accounts being unfrozen on August 22.
However, the current court restriction is unrelated to the EFCC probe and stems from two water supply contracts awarded to Gamji in June 2017 under the administration of former Governor Adegboyega Oyetola (now Minister of Marine and Blue Economy), funded via an Islamic Development Bank loan facility.
According to court filings, variations in project scope and engineering designs increased the revised contract values to $20.24 million and $10.95 million. Gamji stated that despite completing 93 percent of the work and receiving a Substantial Completion Certificate on November 14, 2024, disputes arose over cost adjustments and price revisions.
After mediation failed, the parties entered arbitration on May 15, 2025, culminating in a final arbitral award on July 24, 2026, which directed Osun State to pay $13 million and ₦157.5 million alongside a 20 percent annual interest penalty on unpaid balances. Gamji approached the Federal High Court after the payment deadline expired on August 24 without compliance.
Justice Osiagor adjourned the matter until October 22, 2026, for the hearing of the motion on notice.
The Osun State Government has yet to issue an official public statement regarding the ruling.
No Comments