A Federal High Court in Lagos has ordered commercial banks to freeze the bank accounts of Osun State Government over a $13.9 million arbitration award to Gamji Nigeria Company Limited. The order, given by Justice D.E. Osiagor, affects several banks including GT Bank, Access Bank, and Zenith Bank. The dispute arose from two contracts awarded to Gamji by Osun State Government in 2017 for water infrastructure works in Ilesa West Local Council.
The contracts were part of a Federal Ministry of Finance-facilitated Islamic Development Bank loan for the Ilesa West Water Supply and Sanitation Project. The projects involved construction of transmission mains, booster pump stations, and water reservoirs. However, the state government and the opposition All Progressives Congress (APC) have traded blame over the court order, with each side accusing the other of mishandling the matter.
An APC chieftain, Akin Adeyi, accused the Governor Ademola Adeleke administration of lacking integrity and allowing the water project case to deteriorate, insinuating financial mishandling. However, Senior Special Assistant to the Governor on Bureau of Social Services, Bello Sheriff, described the court order as a legacy matter predating Adeleke's administration.
According to Sheriff, the contract was awarded during former Governor Rauf Aregbesola's administration, while former Governor Gboyega Oyetola's administration terminated it, leading to litigation. Both administrations were APC. The opposition said Adeleke's government lacked proactiveness to have watched the matter linger until accounts were frozen.
The Osun State government has filed an application before a Federal High Court, Lagos, to set aside the ex-parte order awarding payment of $13.9 million to Gamji Nigeria Company Limited and Post-No-Debits to all its bank accounts. The application was filed on October 2, 2026, according to the state's Commissioner for Information and Public Enlightenment, Kolapo Alimi.
The state government described the court order as a product of deceit and substantial non-disclosure of material facts to the court. The government's legal team is also approaching the High Court of Lagos State to set aside the arbitration award, citing several irregularities.
The purported award referenced in the ex-parte order of September 9, 2026, does not exist as there was no arbitral award made against Osun State government in July 2024. The development has triggered a blame game between the Adeleke administration and the opposition APC, with each side accusing the other of mismanaging the state's affairs.
Key points
- Osun state govt bank accounts frozen over $13.9m debt to Gamji Nigeria Company Limited
- State government and APC trade blame over court order
- Osun state govt files application to set aside ex-parte order
