The Federal High Court in Lagos has directed commercial banks to impose a “Post No Debit” restriction on accounts belonging to the Osun State Government over a $13.9 million arbitration award in favour of Gamji Nigeria Company Limited.
Justice D.E. Osiagor issued the interim order following an application brought by Gamji through its counsel, Yunus AbdulSalam, SAN, in a suit numbered FHC/L/CS/1233/2026.
A certified true copy of the ruling was made available to journalists on Saturday.
Gamji is seeking to secure $13,924,343.32 and N157.5 million awarded to the company following an arbitration arising from water infrastructure projects carried out in Ilesa West Local Government Area of Osun State.
The financial institutions named 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, among others.
According to an affidavit supporting the application, the disagreement stemmed from two contracts awarded to Gamji by the Osun State Government in June 2017 for the execution of water infrastructure projects.
The first contract, identified as Slot 1, involved the construction of transmission mains and booster pump stations, while Slot 2 covered the construction of water reservoirs under a water supply and sanitation project in Ilesa West.
Gamji stated that the projects were funded through an Islamic Development Bank loan facility arranged by the Federal Ministry of Finance.
The company said the original value of the Slot 1 contract stood at $15.98 million, while Slot 2 was valued at $9.70 million.
It explained that subsequent changes to the engineering designs and variations to the scope of work led to delays and adjustments in the project costs.
Following the revisions, the value of Slot 1 rose to $20.24 million, while Slot 2 increased to $10.95 million.
Gamji further claimed that it had executed 93 per cent of the contracted works by October 2023, following which the state government issued a Substantial Completion Certificate on November 14, 2024.
The company said disagreements subsequently arose over claims involving extensions of time, price adjustments and rising costs of materials and labour.
According to Gamji, the state government rejected the claims, while efforts to settle the dispute through mediation were unsuccessful.
The company thereafter served an arbitration notice on April 3, 2025, which was accepted by the state government, with the government subsequently nominating its arbitrator.
Preliminary proceedings were later conducted in Lagos on May 15, 2025.
The arbitral panel eventually issued its final award on July 24, 2026, ordering the Osun State Government to pay Gamji $13,924,343.32 and N157.5 million in reimbursable arbitration fees.
The panel also imposed interest at an annual rate of 20 per cent on any outstanding sum after the expiration of the specified period for compliance.
Gamji said the deadline for compliance elapsed on August 24, 2026, without payment by the state government, leading the company to approach the Federal High Court for relief.
In his ruling, Justice Osiagor directed the affected financial institutions to immediately restrict transactions on the Osun State Government accounts listed in the order.
The judge ordered that funds up to $13,924,343.32 and N157.5 million be preserved to satisfy the arbitral award pending the determination of the motion on notice.
“A preservation 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 account domiciled with them for the preservation of the funds with them in the sum of $13,924,343.32 and N157,500,000.00 towards the liquidation of the Arbitral Award dated 24th July, 2026 which has become due and enforceable, pending the hearing and determination of the motion on notice,” the court stated.
The court adjourned the case until October 22, 2026, for hearing of the motion on notice.
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