OSUN STATE GOVERNMENT CONTESTS BANK ACCOUNT RESTRICTION OVER $13.9M ARBITRAL AWARD

State legal team approaches Federal High Court to vacate interim freezing order stemming from an Ilesa water project dispute

The Osun State Government has formally initiated legal steps to challenge and vacate a court order restricting its bank accounts over a multi-million-dollar arbitral award.  

The development follows an interim order issued by the Federal High Court directing major commercial banks to place a "Post No Debit" restriction on accounts belonging to the state government.  

The legal action originated from an application filed by Gamji Nigeria Company Limited to enforce a $13,924,343.32 and ₦157.5 million arbitral award linked to water infrastructure projects executed in the Ilesa West Local Government Area.  

In its response, the Osun State legal team contested the enforcement proceedings, arguing grounds for the reversal of the freezing order ahead of the substantive hearing slated for later in the month.  

State authorities maintained that the administration is engaging the legal process robustly to protect public funds and ensure that governance and service delivery across the state face no undue disruptions.

Financial analysts and legal observers have noted that the ongoing dispute highlights the complex financial liabilities and contractual challenges sub-national governments frequently face regarding legacy project obligations.