Osun Challenges Court Account Restriction Over Disputed $13.9m Arbitral Award
Osun State Government is challenging a Federal High Court order restricting withdrawals from some of its bank accounts over a disputed arbitral award linked to water projects in Ilesa West.
The interim order covers funds of up to $13.924 million and N157.5 million.
Justice D.E. Osiagor of the Federal High Court in Lagos granted the order after an application by Gamji Nigeria Company Limited.
The financial institutions named in the case were directed to place Post No Debit restrictions on Osun State Government accounts held with them and preserve funds up to the stated amounts while the court considers Gamji’s enforcement application.
The restriction does not mean the money has been transferred to Gamji.
It also does not mean the underlying dispute has been finally decided.
How the dispute began
The case arose from two water infrastructure contracts awarded to Gamji in 2017 for projects in Ilesa West Local Government Area.
Disagreements later developed over issues including extensions of time, price adjustments and higher labour and material costs.
Gamji began arbitration in April 2025.
An arbitral panel delivered an award on July 24, 2026, directing Osun State Government to pay $13,924,343.32 and N157.5 million in reimbursable arbitration fees.
The award also included interest provisions for outstanding sums after the compliance period.
Why Gamji went to court
Gamji later approached the Federal High Court seeking to preserve state funds while pursuing enforcement of the arbitral award.
Justice Osiagor granted the interim account restriction and fixed October 22 for hearing of the motion on notice.
The order is therefore a preservation measure within an ongoing legal dispute.
It is not a final judgment resolving every issue between the company and the state government.
Osun is challenging both the restriction and the award
Osun State Government says it filed an application on October 2 asking the Federal High Court to set aside the ex parte restriction.
The state also says it had already commenced separate proceedings at the Lagos State High Court challenging the arbitral award itself.
In an official statement, Osun alleged that this earlier challenge was not disclosed when Gamji obtained the interim restriction.
The government also raised questions about the arbitration process and said it had sought to suspend enforcement of the award.
Those are Osun State Government’s legal claims.
They are not findings by the court against Gamji.
They also do not, by themselves, cancel either the arbitral award or the interim restriction.
October 22 court outcome remains unconfirmed
The Federal High Court had scheduled October 22 for hearing of the motion on notice.
At the time this report was prepared, IDNN had not independently established whether the court extended, varied or discharged the restriction, or whether the matter was adjourned again.
That means the story cannot state that the restriction remained in force after the hearing.
It also cannot state that the restriction was lifted.
Until the latest court position is authenticated, the verified record remains the existing interim order and the competing legal challenges already filed by the parties.
What the case could mean for public funds
The dispute involves public money and contracts for water infrastructure.
That creates a direct public-interest question: are restrictions on state accounts affecting salaries, public services, infrastructure payments or other government obligations?
So far, that consequence has not been established.
The existence of an arbitral award does not by itself prove that public services have been disrupted.
Neither does an interim account restriction.
The accountability questions
The unresolved questions are now straightforward:
What work was completed under the original contracts?
What sums were certified and paid?
What amounts remain disputed?
Are the account restrictions affecting state operations?
And what will the courts ultimately decide about the arbitral award and its enforcement?
What is verified now
The verified position remains limited.
A Federal High Court placed interim restrictions on Osun State Government accounts held with financial institutions named in the case to preserve funds linked to a disputed arbitral award.
Osun is challenging both the restriction and the award.
The outcome of the October 22 hearing had not been independently established when this report was prepared.
