The bank accounts of the [Osun State Government](https://osun.gov.ng) have been put under a fresh restriction, coming weeks after the [Economic and Financial Crimes Commission](https://efcc.gov.ng) lifted a previous freeze following an intervention by [President Bola Tinubu](https://en.wikipedia.org/wiki/Bola_Tinubu).
According to reports, the new limitation stems from an application by [Gamji Nigeria Company Limited](https://www.gamji.com) that seeks to safeguard state funds tied to a $13.9 million arbitration award arising from water‑infrastructure projects in Ilesa West Local Government Area.
Judge Daniel Osiagor of the [Federal High Court](https://en.wikipedia.org/wiki/Federal_High_Court_(Nigeria)) in Lagos, hearing suit FHC/L/CS/1233/2026, ordered commercial banks to impose a “Post No Debit” restriction on the state’s accounts.
The injunction covers up to $13.9 million and N157.5 million, pending a hearing on Gamji’s motion on notice.
Banks instructed to enforce the order include Guaranty Trust, Access, First HoldCo, Zenith, United Bank for Africa, Ecobank, Fidelity, Stanbic IBTC, Sterling, Union, Wema and others.
This development follows a prior EFCC action that froze Osun’s Federal Allocation Account with First Bank and two joint accounts with Zenith Bank during the run‑up to the 15 August governorship election.
The earlier freeze was justified by the agency as a response to suspicious fund movements, while the state rejected the claim, labeling the move politically motivated.
The timing proved contentious, occurring ten days before the election in which Governor Ademola Adeleke (Accord Party) faced APC candidate Bola Oyebamiji.
President Tinubu later directed the EFCC to lift the freeze, warning that the action could be perceived as federal interference in the electoral process. The accounts were released on 22 August.
The current restriction, however, is unrelated to the EFCC investigation.
Background: In June 2017, the then‑government of former Governor Adegboyega Oyetola (now Minister of Marine and Blue Economy) awarded two water‑infrastructure contracts to Gamji for works in Ilesa West.
One contract covered the construction of transmission mains and booster pump stations; the second involved building water reservoirs under a broader water‑supply and sanitation scheme.
Court filings indicate the projects were financed through an Islamic Development Bank loan facilitated by the Federal Ministry of Finance.
The first contract was originally valued at $15.98 million and the second at $9.70 million.
Gamji later asserted that design changes and scope variations caused delays and cost overruns, prompting revised contract values of $20.24 million and $10.95 million respectively.
The company claimed that about 93 % of the work was completed by October 2023 and that the state issued a Substantial Completion Certificate on 14 November 2024.
Subsequent disputes arose over extensions, price adjustments and rising material and labour costs. Gamji’s claims were rejected, and mediation attempts failed.
An arbitration notice was served on 3 April 2025. The state accepted the process, nominated its arbitrator, and preliminary hearings took place in Lagos on 15 May 2025.
The arbitral panel delivered its final award on 24 July 2026, ordering the Osun government to pay Gamji $13 million plus N157.5 million in reimbursable arbitration fees.
The court order reads, in part: “A preservation order of interim injunction is granted directing the cited financial institutions in Nigeria to immediately place a Post No Debit restriction on the Respondent’s account domiciled with them for the preservation of the funds with them in the sum of $13,924,343.32 and N157,500,000.00 towards the liquidation of the Arbitral Award dated 24th July, 2026 which has become due and enforceable, pending the hearing and determination of the motion on notice.”
The award also stipulates a 20 % annual interest on any outstanding balance after the compliance deadline.
Gamji informed the court that the deadline lapsed on 24 August without payment, prompting the company to seek a preservation order from the Federal High Court.
Judge Osiagor granted the interim application, directing the listed banks to enforce the “Post No Debit” restriction to protect the funds pending enforcement of the award.
The order remains interim; the substantive application will be heard on 22 October 2026. The Osun State Government has not yet issued a public response.