The bank accounts of the Osun State Government have been placed under a court-ordered “Post No Debit” restriction following a dispute over a multimillion-dollar arbitration award involving Gamji Nigeria Company Limited.
The Federal High Court in Lagos ordered several commercial banks to restrict withdrawals from accounts operated by the Osun State Government while preserving funds that could be used to satisfy an arbitration award of $13,924,343.32 and ₦157.5 million.
The case involves water infrastructure projects in Ilesa West Local Government Area of Osun State.
The affected financial institutions include GTBank, Access Bank, FirstBank, Zenith Bank, UBA, Ecobank, Fidelity Bank, Stanbic IBTC, Sterling Bank, Union Bank and Wema Bank, among others.
However, there is already another major development in the case.
The Osun State Government has asked the Federal High Court to set aside the order, arguing that Gamji allegedly failed to disclose important facts when it obtained the restriction. The state government is also challenging the underlying arbitration award.
This means the matter is still being contested in court and the restriction should not be presented as a final determination of the dispute.
Why Were Osun State Government Bank Accounts Restricted?
The restriction followed an application by Gamji Nigeria Company Limited, a contractor involved in water infrastructure projects in Ilesa West.
Gamji approached the Federal High Court seeking to preserve funds in Osun State Government accounts after an arbitration panel awarded the company $13,924,343.32 and ₦157.5 million.
According to reports on the court proceedings, the dispute originated from contracts awarded to Gamji by the Osun State Government in June 2017 for water infrastructure projects in Ilesa West.
The dispute later developed into disagreements concerning issues such as extensions of time, changes in project requirements, price adjustments and increases in the cost of materials, labour and other inputs.
Gamji said attempts to resolve the disagreement through mediation did not settle the matter, leading to arbitration proceedings.
How Much Does Osun State Allegedly Owe Gamji?
The amount at the centre of the court application is substantial.
| Claim | Amount |
|---|---|
| Arbitration award | $13,924,343.32 |
| Reimbursable arbitration fees | ₦157,500,000 |
| Interest mentioned in the award | 20% per annum on outstanding amount after the compliance deadline |
Gamji said the arbitration panel delivered its final award on July 24, 2026.
The company further told the court that the deadline for compliance expired on August 24, 2026, without payment of the awarded sums.
The 20% annual interest provision is particularly important because the amount at stake could continue increasing if the relevant conditions in the award remain applicable to an outstanding balance.
Which Banks Have Been Ordered to Restrict Osun Accounts?
The court order covers several commercial banks where the Osun State Government maintains accounts.
The institutions identified in reports of the order include:
| No. | Bank |
|---|---|
| 1 | GTBank |
| 2 | Access Bank |
| 3 | FirstBank |
| 4 | Zenith Bank |
| 5 | UBA |
| 6 | Ecobank |
| 7 | Fidelity Bank |
| 8 | Stanbic IBTC |
| 9 | Sterling Bank |
| 10 | Union Bank |
| 11 | Wema Bank |
| 12 | Other financial institutions listed in the court process |
The order is therefore not directed at one particular bank.
It covers accounts operated by the Osun State Government with the financial institutions named in the court process.
What Does “Post No Debit” Mean?
A Post No Debit (PND) restriction is a banking instruction that prevents debits or withdrawals from an account.
In simple terms, the restriction is intended to stop money from being withdrawn from the affected account while the funds are being preserved for the purpose specified by the court.
It does not mean that the bank itself has taken ownership of the money.
In this case, the court directed the named financial institutions to preserve funds in the Osun State Government’s accounts up to the value of the amounts identified in the order, pending further proceedings.
Related Content
The order described the restriction as an interim preservation order.
What Did the Federal High Court Order?
Justice D.E. Osiagor of the Federal High Court in Lagos issued the order in suit FHC/L/CS/1233/2026 following Gamji’s application.
The court directed the financial institutions to place a Post No Debit restriction on the Osun State Government’s accounts for the preservation of funds amounting to $13,924,343.32 and ₦157.5 million towards the potential liquidation of the arbitration award.
The order remains an interim measure pending the hearing and determination of the substantive application.
The court fixed October 22, 2026 for the hearing of the motion on notice.
Why Is Gamji Seeking the Osun Government’s Bank Funds?
Gamji’s position is that the arbitration award has become due and enforceable and that the state government had not paid the amount by the stipulated deadline.
The company therefore approached the Federal High Court to preserve funds in the state’s bank accounts while pursuing enforcement of the award.
This is why the court order is focused on preserving funds, rather than simply being a final declaration that the entire dispute has been resolved.
The underlying dispute remains contested.
What Is Osun State Government Saying?
The Osun State Government has rejected the basis on which the restriction was obtained and has taken legal steps to challenge it.
On October 4, the government said it had filed an application before the Federal High Court in Lagos asking the court to vacate the ex-parte order restricting its accounts.
The application was filed on October 2, 2026.
The government alleged that Gamji obtained the order through what it described as “deceit and substantial non-disclosure of material facts.” It also said the arbitration award itself contains irregularities and is being challenged through the appropriate legal process.
This response is important because it means Osun is not accepting the restriction or the underlying award as uncontested.
Osun Government Is Also Challenging the Arbitration Award
The bank-account restriction is only one part of the legal dispute.
The state government said it is also taking steps to challenge the arbitration award on which Gamji based its application.
According to the government’s position, important facts concerning the dispute were allegedly not fully disclosed to the Federal High Court when the restriction was sought.
The government has therefore asked the court to review the circumstances surrounding the order and to set it aside.
The allegations made by the Osun government remain its position in the ongoing legal dispute and have not been established as facts by a final judgment.
When Will the Court Hear the Osun Bank Account Case?
The Federal High Court has scheduled October 22, 2026 for the hearing of the motion on notice.
That hearing is expected to be important because the court will consider the next stage of the dispute after the interim restriction.
Until the court makes a further determination, the existing order should be understood as an interim preservation measure, not necessarily the final outcome of the case.
Was This the First Restriction on Osun Government Accounts?
The latest court order has attracted additional attention because Osun State had previously faced restrictions on some of its accounts.
Premium Times reported that the latest development came weeks after the EFCC lifted a freeze on some Osun State Government accounts following intervention by President Bola Tinubu.
The latest restriction, however, is connected to a different dispute involving Gamji Nigeria Company Limited and the arbitration award arising from the water infrastructure projects.
It is therefore important not to treat the two matters as one legal case.
What Does This Mean for Osun State Government?
The practical significance of the order is that affected accounts cannot be freely operated to the extent covered by the Post No Debit instruction.
The restriction is designed to preserve funds while the court considers the enforcement proceedings.
For a state government, restrictions on bank accounts can create financial and administrative pressure because government payments and other transactions depend on access to public funds.
However, the court order does not mean that every account belonging to every government agency in Osun State has automatically been permanently frozen.
The specific accounts and financial institutions covered are determined by the court process.
Does the Court Order Mean Osun Has Already Lost the Case?
No.
The order is an interim preservation measure.
The Federal High Court has not, by this order alone, finally resolved all issues surrounding the dispute between Osun State Government and Gamji Nigeria Company Limited.
The state government is challenging the restriction and the underlying arbitration award.
The court is expected to hear the relevant application on October 22.
This distinction matters because the phrase “court freezes Osun accounts” can make it sound as though the entire legal dispute has already been concluded.
It has not.
What Was the Original Dispute About?
The dispute goes back to contracts awarded in 2017.
Gamji was engaged for water infrastructure projects in Ilesa West Local Government Area.
The company later raised claims connected to project execution, including issues involving extensions of time, variations and increased costs.
According to the reports filed in court, the disagreements could not be resolved through mediation, leading to arbitration.
Gamji issued an arbitration notice in April 2025, while the Osun government accepted the arbitration process and nominated its arbitrator.
The preliminary meeting of the arbitration panel took place in Lagos in May 2025.
The final arbitration award was subsequently delivered on July 24, 2026.
Osun Bank Accounts: Key Facts
| Item | Details |
|---|---|
| State involved | Osun State |
| Court | Federal High Court, Lagos |
| Judge | Justice D.E. Osiagor |
| Suit number | FHC/L/CS/1233/2026 |
| Applicant | Gamji Nigeria Company Limited |
| Main issue | Enforcement/preservation of funds linked to arbitration award |
| Dollar amount | $13,924,343.32 |
| Naira amount | ₦157.5 million |
| Arbitration award date | July 24, 2026 |
| Compliance deadline cited | August 24, 2026 |
| Restriction | Post No Debit |
| Banks named | GTBank, Access, FirstBank, Zenith, UBA, Ecobank, Fidelity, Stanbic IBTC, Sterling, Union, Wema and others |
| Osun’s response | Application to vacate the order and challenge the award |
| Next major court date | October 22, 2026 |
What Happens Next?
The immediate next step is the court hearing scheduled for October 22.
The Osun State Government wants the interim restriction removed and is challenging the legal basis for enforcing the arbitration award.
Gamji, on the other hand, is seeking to preserve the funds it says are necessary to satisfy the award.
The outcome of the next proceedings will determine whether the restriction remains in place, is modified or is lifted, subject to whatever further legal steps the parties may take.
For now, the important point is that Osun State Government bank accounts have been placed under a Post No Debit restriction by an interim Federal High Court order, while the state government is actively challenging that order.
Conclusion
The latest Osun bank account development is linked to a $13.924 million and ₦157.5 million arbitration award in favour of Gamji Nigeria Company Limited over water infrastructure projects in Ilesa West.
The Federal High Court in Lagos ordered banks including GTBank, Access Bank, FirstBank, Zenith Bank, UBA, Ecobank, Fidelity Bank, Stanbic IBTC, Sterling Bank, Union Bank and Wema Bank to place a Post No Debit restriction on relevant Osun State Government accounts to preserve funds for the award.
But the matter is not over.
Osun State Government has filed an application seeking to vacate the order and is also challenging the arbitration award, alleging that material facts were not fully disclosed to the court and raising objections to the award itself.
The next major date in the case is October 22, 2026, when the court is scheduled to hear the motion on notice.