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| Photo credit — Governor Ademola Adeleke |
The Federal High Court in Lagos has granted an interim order directing several commercial banks to place a “Post No Debit” restriction on accounts linked to the Osun State Government. The order aims to preserve funds covering a $13.9 million arbitration award won by Gamji Nigeria Company Limited.
Justice D.E. Osiagor issued the interim preservation order after hearing an application by Gamji, represented by Yunus AbdulSalam, SAN. The suit is marked FHC/L/CS/1233/2026.
Gamji is seeking to secure payment of $13,924,343.32 plus ₦157.5 million awarded in arbitration. The dispute stems from water infrastructure contracts in Ilesa West Local Government Area of Osun State.
Banks named 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, Wema Bank and others.
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The court directed the banks to preserve funds belonging to the state up to the value of the arbitral award pending determination of Gamji’s substantive application. In the ruling, Justice Osiagor stated that a preservation order of interim injunction is granted directing the cited financial institutions to immediately place a Post No Debit restriction on the Respondent’s accounts for the preservation of the funds in the sum of $13,924,343.32 and ₦157,500,000.00 towards liquidation of the Arbitral Award dated 24 July 2026, which has become due and enforceable, pending hearing of the motion on notice.
Background of the dispute
According to the company’s affidavit, the Osun State Government awarded two contracts to Gamji in June 2017 for water infrastructure works under a broader scheme partly funded through an Islamic Development Bank loan facilitated by the Federal Ministry of Finance.
• Slot 1 covered transmission mains and booster pump stations (initial value about $15.98 million, later revised to $20.24 million).
• Slot 2 covered water reservoirs (initial value about $9.70 million, later revised to $10.95 million).
Gamji stated that design changes and scope variations caused delays and cost increases. It claimed roughly 93% completion by October 2023 and said the state issued a Substantial Completion Certificate on 14 November 2024. Disagreements later arose over extensions of time, price adjustments, and higher material and labour costs.
Mediation failed. Gamji issued an arbitration notice on 3 April 2025. The state participated, and the arbitral panel delivered its final award on 24 July 2026, ordering payment of the sums above plus 20% annual interest on any outstanding amount after the compliance period. Gamji said the compliance deadline expired on 24 August 2026 without payment, prompting the court application.
The court adjourned the matter to 22 October 2026 for hearing of the motion on notice.
Source note:
This report is based on details from the court order and contemporaneous reporting by Punch Newspapers and The Nation. Readers should monitor official court updates for further developments.
Samuel O. Sulaimon is the founder and Editor-in-Chief of Naijapiz. He covers News, Sports, Finance, Faiths, Education, Technology.
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