Osun State seeks to vacate court order freezing government accounts

The Osun State Government has approached the Federal High Court in Lagos to vacate an interim order that restricts transactions on its bank accounts. The order, issued by Justice D. E. Osiagor, imposes a ‘Post No Debit’ restriction on accounts held by the state at several major commercial banks, including Zenith Bank, Access Bank, and First Bank.

The restriction follows an application by Gamji Nigeria Company Limited to enforce an arbitration award totaling approximately $13.9 million and ₦157.5 million. The dispute stems from 2017 contracts for water infrastructure projects in the Ilesa West Local Government Area, which were funded through an Islamic Development Bank loan facility.

Osun State officials allege that Gamji obtained the court order through deceit and the non-disclosure of material facts. The government contends that it had already filed a suit at the Lagos State High Court on September 1, 2026, to challenge the validity of the arbitration award and suspend its enforcement. Furthermore, the state disputes the existence of a July 2024 award referenced in the application, stating the only relevant award was issued in July 2026 and is currently under legal challenge.