A Federal High Court, in Lagos has ordered 32 financial institutions operating in Nigeria, to place a Post-No-Debit restriction on accounts operated by the Osun State Government, over an alleged failure to liquidate an arbitral award valued at $13.9 million USD and N157.5 million.
Justice Daniel Osiagor who presided over the court granted the preservatory order following an ex-parte application filed by Gamji Nigeria Company Limited, its lawyer, Yunus AbdulSalam SAN in the suit numbered FHC/LAG/CS/1233/2026.
The applicant had urged the court to direct banks and other cited financial institutions to preserve funds belonging to the Osun State Government, pending the hearing and determination of its motion on notice.
The order specifically covers the sums of $13,924,343.32 and N157,500,000, which the Gamji Nigeria Company Limited said were required to satisfy an arbitral award dated July 24, 2024 that had become due and enforceable.
The financial institutions cited in the proceedings include Guaranty Trust Bank, Access Bank, First Bank, Zenith Bank, United Bank for Africa, Ecobank, Fidelity Bank, Stanbic IBTC, Sterling Bank, Wema Bank, Polaris Bank, Union Bank, Opay, PalmPay and Moniepoint, among others.
The Islamic Development Bank and the Federal Ministry of Finance were also listed among the cited institutions.
In urging the preservatory order, the applicant lawyers told the court that the was pursuant to Section 19 of the Arbitration and Mediation Act, 2023; Order 26 Rule 6, and Order 28 Rule 11(1)(3) of the Federal High (Civil Procedure) Rules 2019 and under the court’s inherent jurisdiction.
The applicant’s lawyers also told the court that the motion Exparte is supported with an affidavit of urgency and affidavit in support of the exparte motion and writing address and some documentary exhibits.
Justice Osiagor made the preservatory order after hearing submissions by applicant’s counsel.
In granting the order, Justice Osiagor ruled that: “upon reading the affidavit in Support, the Exhibits attached and the Written Address dated and filed on the 7th September, 2026, in the Federal High Court Registry deposed to by Aderibigbe Adebayo Bernard.
“It is hereby ordered as follows, that a preservatory order of interim injunction is granted directing the cited financial institutions in Nigeria to immediately place a Post No Debit restrictions on the respondent’s account domiciled with them for the preservation of the funds in the sums of $13,924,343.32 (thirteen million, nine hundred and twenty-four thousand, three hundred and forty-three US Dollars, thirty two cent) and N157,500,000.00 (one hundred and fifty-seven million, five hundred thousand naira) towards the liquidation of the Arbitral Award dated 24th July, 2024 which has become duc and enforceable; pending the hearing and determination of the motion on notice.”
Justice Osiagor thereafter adjourned the matter to October 22, 2026 for hearing of the Motion on Notice.