The Federal High Court in Lagos has ordered commercial banks to place a “Post No Debit” restriction on bank accounts operated by the Osun State Government over a $13.9m arbitration award 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. A certified true copy of the ruling was obtained by Sunday PUNCH on Saturday.
The company is seeking to preserve $13,924,343.32 and N157.5m awarded to it following an arbitration proceeding arising from water infrastructure projects in the Ilesa West Local Government Area of Osun State.
Financial institutions 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 filed in support of the motion, the dispute stemmed from two contracts awarded to Gamji by the Osun State Government in June 2017 for water infrastructure works. The projects involved the construction of transmission mains and booster pump stations under Slot 1, alongside water reservoirs under Slot 2, as part of a water supply and sanitation project in Ilesa West.
Gamji stated that the projects were funded through an Islamic Development Bank loan facility facilitated by the Federal Ministry of Finance. The company noted that the original contract values were $15.98m for Slot 1 and $9.70m for Slot 2. It claimed that engineering design alterations and scope variations caused delays, leading to project cost revisions. Subsequent amendments raised the values of Slot 1 and Slot 2 to $20.24m and $10.95m, respectively.
Gamji further claimed that 93 per cent of the contract had been completed by October 2023, with the state government issuing a Substantial Completion Certificate on November 14, 2024. The arbitral panel delivered its final award on July 24, 2026, directing the Osun State Government to pay $13,924,343.32 and N157.5m, with 20 per cent annual interest after August 24, 2026 compliance deadline.
Ruling on the application, Justice Osiagor ordered the affected banks to immediately restrict withdrawals and preserve funds up to the value of the award pending the hearing and determination of the motion on notice, adjourned to October 22, 2026.
