Osun State Seeks Reversal of Court Order Restricting State Bank Accounts Over $13.9M Dispute
The Osun State Government filed an application on October 2, 2026, requesting the Federal High Court in Lagos to vacate a Post No Debit restriction on its bank accounts.
In Brief
- •The Osun State Government filed an application on October 2, 2026, requesting the Federal High Court in Lagos to vacate a Post No Debit restriction on its bank accounts.
- •The restriction followed an interim order enforcing a $13.9 million arbitral award and N157.5 million in fees granted to contractor Gamji Nigeria Company Limited.
- •State officials argue Gamji concealed material facts, including a prior lawsuit filed by the state on September 1, 2026, at the Lagos State High Court to set aside the arbitral award.
- •The contract dispute stems from 2017 water infrastructure projects in Ilesa West Local Government Area funded through an Islamic Development Bank loan facility.
Why It Matters
The restriction on Osun State's commercial bank accounts presents significant governance and operational risks for the state government, potentially impairing its ability to execute public spending and service delivery. The case underscores the critical regulatory and legal stakes surrounding public infrastructure contracts, arbitral enforcement, and cross-jurisdictional proceedings in Nigeria.
Key Details
- Arbitral Award Value
- $13.9 million plus N157.5 million
- Date Osun Filed to Vacate Restriction
- October 2, 2026
- Date Osun Challenged Arbitral Award
- September 1, 2026
- Next Court Hearing Date
- October 22, 2026
Context & Background
The dispute originates from two water infrastructure contracts awarded in 2017 during former Governor Adegboyega Oyetola's administration to construct transmission mains, booster pump stations, and reservoirs in Ilesa West. Although the contractor reported 93 percent completion by October 2023, subsequent disagreements over project variations, material cost increases, and time extensions resulted in formal arbitration proceedings.
What To Watch
The Federal High Court in Lagos is scheduled to hear the matter on October 22, 2026.
Original Reporting & Sources
VNews is an independent briefing product. Original reporting remains credited to the following publishers:
This brief was synthesized automatically using attributed third-party reporting. VNews is a digital news publication produced under the VContent Group brand and operated by Francis Vincent Sunday in Ghana, independent from the publishers cited above. Read our AI Transparency Policy and Editorial & Corrections Policy.