Court Freezes Osun Government Accounts Over $13.9m Arbitration Award

A Federal High Court in Lagos has ordered banks to place a Post No Debit restriction on accounts operated by the Osun State Government. The order is linked to a $13.9 million arbitration award in favour of Gamji Nigeria Company Limited. The dispute arose from water infrastructure contracts awarded for projects in Ilesa West Local Government Area. Gamji said delays, design changes and cost variations led to disagreements over payments after the projects were substantially completed. An arbitral panel awarded the company $13.92 million and ₦157.5 million in July 2026, with 20 per cent yearly interest on any unpaid balance after the compliance deadline. The court directed several banks to preserve funds up to the award amount pending the hearing of the substantive application on October 22, 2026.

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