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 a $13.9m arbitration award in favour of Gamji Nigeria Company Limited.
Justice D.E. Osiagor granted the interim order following an application filed by Gamji through its counsel, Yunus AbdulSalam, SAN, in a suit marked FHC/L/CS/1233/2026.
A certified true copy of the ruling was issued to journalists on Saturday.
The company is seeking to preserve $13,924,343.32 and N157.5m awarded to it after an arbitration arising from water infrastructure projects executed in Ilesa West Local Government Area of Osun State.
The financial institutions listed 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 filed in support of the application, the dispute originated from two contracts awarded to Gamji by the Osun State Government in June 2017 for water infrastructure projects.
The contracts 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 project in Ilesa West.
Gamji said the projects were financed through an Islamic Development Bank loan facility facilitated by the Federal Ministry of Finance.
The company stated that the initial value of the Slot 1 contract was $15.98m, while Slot 2 was valued at $9.70m.
It said subsequent engineering design changes and variations in the scope of work resulted in delays and revisions to the project costs.
Following the amendments, the value of Slot 1 increased to $20.24m, while Slot 2 rose to $10.95m.
Gamji further claimed that it had completed 93 per cent of the contracted works by October 2023, after which the state government issued a Substantial Completion Certificate on November 14, 2024.
The company said disputes later emerged over claims relating to extensions of time, price adjustments and increased costs of materials and labour.
According to Gamji, the state government rejected the claims, while attempts to resolve the disagreement through mediation failed.
The company subsequently issued an arbitration notice on April 3, 2025, which the state government accepted, nominating its arbitrator. Preliminary proceedings were later held in Lagos on May 15, 2025.
The arbitral panel eventually delivered its final award on July 24, 2026, directing the Osun State Government to pay Gamji $13,924,343.32 and N157.5m in reimbursable arbitration fees.
The panel also awarded interest at an annual rate of 20 per cent on any outstanding amount after the expiration of the stipulated compliance period.
Gamji said the compliance deadline expired on August 24, 2026, without the state government making the required payment, prompting the company to approach the Federal High Court for relief.
In his ruling, Justice Osiagor directed the listed financial institutions to immediately restrict transactions on the affected Osun State Government accounts.
The judge ordered the preservation of funds up to $13,924,343.32 and N157.5m towards satisfying 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 matter until October 22, 2026, for hearing of the motion on notice.
Court orders banks to freeze Osun accounts over $13.9m arbitration award