RismadarVoice Reporters
October 4, 2026
The Federal High Court in Lagos has ordered several commercial banks to place a Post No Debit restriction on accounts operated by the Osun State Government, pending proceedings over a $13.9 million 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 suit No. FHC/L/CS/1233/2026.
The company approached the court seeking to preserve $13,924,343.32 and ₦157.5 million awarded to it by an arbitral panel following disputes arising from water infrastructure contracts executed in Ilesa West Local Government Area of Osun State.
The 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 court documents filed by Gamji, the dispute originated from two contracts awarded by the Osun State Government in June 2017 for water infrastructure projects.
One contract covered the construction of transmission mains and booster pump stations, while the other involved the construction of water reservoirs 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 first contract was initially valued at $15.98 million, while the second was worth $9.70 million.
According to Gamji, changes to engineering designs and variations in the scope of work subsequently resulted in delays and adjustments to project costs, raising the values to $20.24 million and $10.95 million respectively.
The company further claimed that it had completed about 93 per cent of the contracted works by October 2023 and that the Osun State Government issued a Substantial Completion Certificate on November 14, 2024.
Disputes later emerged over claims relating to extensions of time, price adjustments and increases in material and labour costs.
Gamji said the state government rejected the claims and that attempts to resolve the dispute through mediation were unsuccessful.
The company subsequently issued a notice of arbitration on April 3, 2025. According to its court filings, the state government participated in the process and nominated an arbitrator, while preliminary proceedings were held in Lagos on May 15, 2025.
The arbitral panel delivered its final award on July 24, 2026, directing the Osun State Government to pay Gamji $13,924,343.32, alongside ₦157.5 million in reimbursable arbitration fees.
The panel also awarded annual interest of 20 per cent on any outstanding amount after the stipulated compliance period.
Gamji told the court that the deadline for compliance expired on August 24, 2026, without payment, prompting its application to the Federal High Court.
Justice Osiagor subsequently directed the listed banks to restrict transactions on the affected state government accounts and preserve funds up to the value of $13,924,343.32 and ₦157.5 million.
The order is interim and remains subject to further proceedings before the court.
The case was adjourned until October 22, 2026, for hearing of the motion on notice.
