The Osun accounts case involving the state government and Gamji Nigeria Company Limited will resume on November 16, 2026, after the Federal High Court in Lagos adjourned further proceedings on Thursday.
The dispute centres on the enforcement of an arbitral award arising from the Ilesa water supply project. The award requires the Osun State Government to pay Gamji $13.92 million and ₦157.5 million over the contractual dispute.
Justice D.E. Osiagor had earlier ordered commercial banks to restrict withdrawals from the state government’s accounts through a “Post No Debit” directive over the outstanding payment.
Court Maintains Restrictions on Osun Accounts
During Thursday’s proceedings, Gamji’s counsel, Ola Olanipekun, SAN, told the court that the Osun State Government approached the state High Court days after the Federal High Court issued its restriction order.
According to the lawyer, the state court subsequently made an order varying the earlier directive.
However, Justice Osiagor directed the banks not to lift the restrictions on the state government’s accounts.
The case will now return to court on November 16 for further hearing as the parties continue their legal battle over the award.
Dispute Stems From Ilesa Water Project
The disagreement arose from two contracts awarded in June 2017 for the construction of transmission mains, booster pump stations and reservoirs under the Ilesa water supply scheme.
Gamji said it had completed about 93 per cent of the contracted work by October 2023. The company also stated that the state government issued a substantial completion certificate on November 14, 2024.
An arbitral panel ruled in Gamji’s favour on July 24, 2026, directing the government to pay the outstanding sums. The award also included annual interest of 20 per cent on unpaid balances.
After the payment deadline expired on August 24, 2026, Justice Osiagor issued an interim order directing major Nigerian banks to restrict withdrawals from the state’s accounts.
Osun Government Challenges Restriction Order
The administration of Governor Ademola Adeleke subsequently asked the court to set aside the restriction order.
The state government alleged that Gamji obtained the order through deceit and failed to disclose material facts. It has also questioned aspects of the arbitration process.
The government maintains that the contract dispute originated under the administration of former Governor Gboyega Oyetola.
The court’s next hearing is expected to advance consideration of the dispute over the arbitral award and the restrictions placed on the state’s accounts.