Osun: Adeleke Government Moves to Lift $13.9m Account Restriction

The Osun State Government has asked the Federal High Court in Lagos to vacate an order restricting its bank accounts over a disputed $13.9 million arbitration award in favour of Gamji Nigeria Company Limited.

The government said it had begun legal proceedings to challenge the order and protect what it described as its right to have the dispute properly determined through judicial review.

Justice D.E. Osiagor had ordered commercial banks to place a “Post No Debit” restriction on accounts operated by the Osun State Government following an application by Gamji.

The application relates to an arbitration award arising from a dispute over water infrastructure projects in Ilesa West Local Government Area.

Osun disputes the award

The state government argues that the arbitration process and resulting award were affected by several irregularities. It also claims that Gamji failed to disclose to the Federal High Court that Osun had already approached the Lagos State High Court to challenge the award.

According to the state, its legal team filed proceedings on September 1, 2026, seeking to set aside the arbitration award and also filed an application to suspend its execution.

ValidViewNetwork reports, these are the government’s allegations and have not been established as findings against Gamji. The company is seeking enforcement of an award, while the state is challenging the validity and enforcement of that award.

A legal dispute with financial consequences

The account restriction has potentially significant consequences for the state’s ability to conduct financial operations.

The legal battle therefore involves two related questions: whether the arbitration award is valid and enforceable, and whether the Federal High Court should maintain restrictions on the state’s accounts while the underlying dispute is being challenged.

The state government has described the Federal High Court application as an attempt by Gamji to enforce the award despite the pending challenge.

ADVERTISEMENT

ValidViewNetwork reports, the courts will ultimately have to determine the competing claims. The episode also demonstrates why arbitration disputes involving public funds require careful judicial scrutiny. Public authorities must honour legitimate awards, but they are equally entitled to challenge awards they believe were obtained or issued unlawfully.