A Federal High Court in Lagos has ordered 32 financial institutions operating in Nigeria to place a Post-No-Debit restriction on accounts linked to the Osun State Government over an alleged failure to settle an arbitral award put at $13.9 million and N157.5 million.

Justice Daniel Osiagor granted the preservatory order following an ex parte application filed by Gamji Nigeria Company Limited through its counsel, Yunus AbdulSalam (SAN), in a suit marked FHC/LAG/CS/1233/2026.

The applicant had urged the court to direct banks and other financial institutions to preserve funds belonging to the state government pending the hearing and determination of a motion on notice.

The order covers the sums of $13,924,343.32 and N157,500,000, which the applicant said are required to satisfy an arbitral award dated July 24, 2024, said to be due and enforceable.

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.

Also listed are the Islamic Development Bank and the Federal Ministry of Finance.
In moving the application, the applicant’s counsel told the court that the request was brought pursuant to Section 19 of the Arbitration and Mediation Act, 2023, as well as Orders 26 Rule 6 and 28 Rule 11(1)(3) of the Federal High Court (Civil Procedure) Rules, 2019, and under the court’s inherent jurisdiction.

Counsel added that the motion ex parte was supported by an affidavit of urgency, an affidavit in support, a written address and documentary exhibits.

After hearing the submissions, Justice Osiagor granted the interim preservatory order.
The judge held that upon consideration of the affidavit and accompanying documents, “a preservatory order of interim injunction is granted directing the cited financial institutions in Nigeria to immediately place a Post No Debit restriction on the respondent’s accounts domiciled with them for the preservation of the funds… pending the hearing and determination of the motion on notice.”

The matter was subsequently adjourned to October 22, 2026, for hearing of the motion on notice.