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 an outstanding arbitration award of $13.9 million and N157.5 million in favour of Gamji Nigeria Company Limited.

Justice D.E. Osiagor issued the interim order following an application filed by Gamji through its counsel, Yunus AbdulSalam, SAN, in a suit marked FHC/L/CS/1233/2026.

The order seeks to preserve funds belonging to the Osun State Government pending the hearing and determination of Gamji’s motion on notice.

According to court documents, the dispute arose from two contracts awarded to Gamji by the Osun State Government in June 2017 for water infrastructure projects in Ilesa West Local Government Area.

The projects involved the construction of transmission mains and booster pump stations under Slot 1, as well as water reservoirs under Slot 2, as part of a water supply and sanitation project.

Gamji said the projects were funded through an Islamic Development Bank loan facility facilitated by the Federal Ministry of Finance.

The company stated that the original contract values were $15.98 million for Slot 1 and $9.70 million for Slot 2.

 

However, following engineering design changes and variations in the scope of work, the contract values were subsequently revised to $20.24 million and $10.95 million, respectively.

Gamji further claimed that it had completed about 93 per cent of the work by October 2023, while the Osun State Government issued a Substantial Completion Certificate on November 14, 2024.

Disagreements later emerged over claims relating to extensions of time, price adjustments and increased costs of materials and labour.

According to the company, attempts to resolve the dispute through mediation failed, leading to the commencement of arbitration.

The arbitral panel eventually issued its final award on July 24, 2026, directing the Osun State Government to pay Gamji $13,924,343.32 and N157.5 million in reimbursable arbitration fees.

The panel also awarded 20 per cent annual interest on any outstanding balance after the expiration of the compliance period.

Gamji told the court that the August 24, 2026 deadline for compliance elapsed without payment, prompting it to seek an order to preserve the state government's funds.

Ruling on the application, Justice Osiagor directed several financial institutions, including 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, to place a “Post No Debit” restriction on the affected accounts.

The judge ordered the banks to preserve funds up to $13,924,343.32 and N157.5 million towards the liquidation of the arbitral award.

The order stated that the restriction would remain in place pending the hearing and determination of the motion on notice.

The case has been adjourned until October 22, 2026, for hearing.