The Federal High Court in Lagos has ordered commercial banks to impose a “Post No Debit” restriction on accounts operated by the Osun State Government over a $13.9m arbitration award in favour of Gamji Nigeria Company Limited. Justice Osiagor issued the order on 4 October 2026, in suit FHC/L/CS/1233/2026.
The order applies to 11 commercial banks. They are to hold funds only up to the awarded sums of $13,924,343.32 and ₦157.5 million, pending a hearing.
The arbitral panel delivered its final award on 24 July 2026, ordering the state government to pay Gamji $13,924,343.32 and ₦157.5 million in reimbursable arbitration fees. Gamji stated that the payment deadline of 24 August expired without settlement, prompting it to approach the court through its counsel, Yunus AbdulSalam, SAN.
The order is not a final judgment. It is an interim preservation measure, and the case will resume on 22 October 2026, when the court will hear Gamji’s motion on notice. The Osun State Government has yet to respond publicly to the order.
The restriction follows an earlier dispute over the state’s finances. An EFCC letter dated 5 August 2026 directed First Bank to restrict the state’s statutory allocation account as part of an ongoing investigation.
The EFCC stated it acted after detecting suspicious movements of funds from the accounts. Governor Ademola Adeleke had alleged a plot to freeze the accounts ahead of the governorship election scheduled for 15 August.
Subsequently, President Bola Tinubu directed the EFCC to return to court and vacate the order, and the accounts were unfrozen.
The latest restriction is unrelated to the EFCC investigation. It remains unclear how much money the banks hold or how broadly the order applies.
The hearing on 22 October is expected to clarify both points, including what the order means for salaries and contractor payments in the state.
Administrator and Writer
