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A High Court in Lagos has placed a Post No Debit restriction on accounts belonging to the Osun State Government, following an application by Gamji Nigeria Company Limited to enforce a $13.9 million arbitration award.
Justice D.E. Osiagor issued the interim order in a suit marked FHC/L/CS/1233/2026.
The order covers accounts held with 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, as reported by Punch.
Court documents show the dispute arose 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 covered the construction of transmission mains and booster pump stations under Slot 1, and water reservoirs under Slot 2, as part of a water supply and sanitation scheme.
Gamji said the projects were funded through an Islamic Development Bank loan facilitated by the Federal Ministry of Finance.
The original contract values were $15.98 million for Slot 1 and $9.70 million for Slot 2.
The company said engineering design alterations and scope variations caused delays, leading to revisions that raised the values to $20.24 million and $10.95 million, respectively.
According to Gamji, 93 per cent of the contract had been completed by October 2023, and the state government issued a Substantial Completion Certificate on November 14, 2024.
Disagreements later emerged over extensions of time, price adjustments and escalated costs of materials and labour.
Gamji said the state government rejected its claims, leading to failed mediation and an arbitration notice issued on April 3, 2025.
On May 15, 2025, preliminary proceedings were held in Lagos after the state government approved the procedure and appointed its arbitrator.
The arbitral panel issued its final award on July 24, 2026, ordering the Osun State Government to pay $13,924,343.32 and N157.5 million in reimbursable arbitration fees, plus 20 per cent annual interest on any outstanding balance after the compliance period.
Gamji said the compliance deadline expired on August 24, 2026, without payment, prompting the application now before the court.
In granting the order, Justice Osiagor directed the banks to preserve funds up to the value of the award pending the hearing and 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 order read in part.
The court adjourned the suit to October 22, 2026.
