The Federal High Court in Lagos has directed commercial banks to place a “Post No Debit” restriction on accounts belonging to the Osun State Government. The interim order follows a $13.9 million arbitration award in favour of Gamji Nigeria Company Limited.
Justice D.E. Osiagor granted the order on an application by Gamji, filed through its counsel Yunus AbdulSalam, SAN, in suit number FHC/L/CS/1233/2026. A certified true copy of the ruling was made available to journalists on Saturday.
The company is seeking to preserve $13,924,343.32 and ₦157.5 million awarded to it by an arbitral panel. The listed banks 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.
The dispute stems from two contracts awarded to Gamji by the Osun State Government in June 2017 for water infrastructure works in Ilesa West Local Government Area. The projects, financed through an Islamic Development Bank loan facilitated by the Federal Ministry of Finance, involved the construction of transmission mains, booster pump stations and water reservoirs.
Original contract values stood at $15.98 million for Slot 1 and $9.70 million for Slot 2. Subsequent design changes and variations increased these figures to $20.24 million and $10.95 million respectively. Gamji stated that it had completed 93 per cent of the works by October 2023 and received a Substantial Completion Certificate on 14 November 2024.
Disagreements later arose over claims for extensions of time, price adjustments and higher material and labour costs. After the state government rejected the claims and mediation failed, Gamji issued an arbitration notice on 3 April 2025. The state accepted the notice and nominated its arbitrator. Preliminary proceedings held in Lagos on 15 May 2025 culminated in a final award on 24 July 2026.
The panel ordered Osun State to pay Gamji $13,924,343.32 plus ₦157.5 million in arbitration costs, with interest at 20 per cent per annum on any outstanding sum after the compliance deadline. That deadline expired on 24 August 2026 without payment, prompting Gamji to approach the court.
Justice Osiagor ordered the banks to immediately restrict transactions on the affected Osun State accounts and to preserve funds up to the awarded amounts pending the hearing of the motion on notice. The matter was adjourned to 22 October 2026.
