Court orders banks to freeze Osun accounts over $13.9m arbitration award

The Federal High Court in Lagos has ordered commercial banks to place a "Post No Debit" restriction on accounts operated by the Osun State Government over a $13.9m arbitration award in favor of Gamji Nigeria Company Limited. The court's interim order was granted following an application filed by Gamji through its counsel, Yunus AbdulSalam, SAN.

The dispute stems from two contracts awarded to Gamji by the Osun State Government in June 2017 for water infrastructure projects in Ilesa West Local Government Area. Gamji claims that the projects were financed through an Islamic Development Bank loan facility facilitated by the Federal Ministry of Finance, and that disputes arose over claims related to extensions of time, price adjustments, and increased costs of materials and labor.

The financial institutions listed in the order include Guaranty Trust Bank, Access Bank, First Bank, Zenith Bank, United Bank for Africa, Ecobank, Fidelity Bank, Stanbic IBTC, Sterling Bank, Union Bank, and Wema Bank.

Brief written by urgent.news from Daily Post Nigeria's own syndicated text. Machine-written — may contain errors; check the original before relying on it.