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The Federal High Court in Lagos has warned that banks which lift restrictions on the Osun state government’s accounts, in compliance with a conflicting order of the Osun State High Court, could face contempt proceedings.
The warning came during proceedings in the dispute between Gamji Nigeria Company Limited and the Osun state government over the enforcement of an arbitral award arising from the Ilesa water project.
According to an account of the proceedings, Justice D. E. Osiagor issued the warning after counsel for Guaranty Trust Bank sought the court’s direction on conflicting orders served on the bank.
The counsel informed the court that, following its earlier order restricting transactions on the state government’s accounts, the bank received another order from the Osun State High Court directing it to lift the restrictions.
Justice Osiagor requested a copy of the state high court order, read it in court and asked whether the bank had complied with it.
The counsel answered that it had not.
The judge expressed strong displeasure at the development and warned that any bank which acted on the conflicting order to disregard the Federal High Court’s directive risked contempt proceedings.
Olanipekun appeared for Gamji, while J. K. Lukman represented the Osun state government.
During the proceedings, the court discharged 13 financial institutions after being informed that they held no funds belonging to the Osun state government.
The institutions were listed as SunTrust; Titan; United Global; Globus; Jaiz; Signature; PalmPay; Taj; Octopus; Lotus; Stanbic, Union and Paralex.
Olanipekun sought time to explore reconciliation between the parties.
However, counsel for Osun state indicated that he wished to proceed with the state’s application to vacate the freezing order.
The matter was adjourned until November 16, 2026, for the hearing of all pending applications.
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