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 $13.9m arbitration award in favour of Gamji Nigeria Company Limited.
Justice D.E. Osiagor granted the interim order following an application by Gamji, filed through its counsel, Yunus AbdulSalam, SAN, in suit number FHC/L/CS/1233/2026.
The ruling, certified as a true copy, was obtained by Sunday PUNCH on Saturday.
Gamji is seeking to preserve $13,924,343.32 and N157.5m awarded to it following an arbitration dispute connected to water infrastructure projects carried out in Ilesa West Local Government Area of Osun State.
Banks affected by 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 dispute arose from two contracts awarded to Gamji by the Osun State Government in June 2017 for water infrastructure development.
The projects covered the construction of transmission mains and booster pump stations under Slot 1, as well as water reservoirs under Slot 2, under a water supply and sanitation programme in Ilesa West.
Gamji said the projects were financed through an Islamic Development Bank loan facility arranged by the Federal Ministry of Finance.
The company stated that the initial contract sums were $15.98m for Slot 1 and $9.70m for Slot 2. It added that changes to engineering designs and variations in project scope resulted in delays and subsequent revisions to the contract values.
Following amendments, the values of Slot 1 and Slot 2 increased to $20.24m and $10.95m respectively.
Gamji further claimed that 93 per cent of the work had been completed by October 2023, while the state government issued a Substantial Completion Certificate on November 14, 2024.
However, disputes later emerged over extension-of-time claims, price adjustments and rising material and labour costs.
According to Gamji, the state government rejected its claims, leading to unsuccessful mediation efforts and the issuance of an arbitration notice on April 3, 2025.
The state government agreed to the arbitration process and nominated its arbitrator, with preliminary proceedings held in Lagos on May 15, 2025.
On July 24, 2026, the arbitral panel issued its final award, ordering the Osun State Government to pay Gamji $13,924,343.32 and N157.5m in reimbursable arbitration fees.
The panel also imposed a 20 per cent annual interest on any unpaid balance after the compliance period expired.
Gamji said the August 24, 2026 compliance deadline passed without payment from the state government, prompting the company to approach the court.
In his ruling, Justice Osiagor directed the affected banks to immediately restrict transactions on the state government’s accounts and preserve funds up to $13,924,343.32 and N157.5m towards the settlement of the arbitral award.
The order read in part: “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 adjourned the case until October 22, 2026, for hearing of the motion on notice.
