The Federal High Court sitting in Lagos has ordered banks to place a “post no debit” restriction on accounts operated by the Osun state government over a $13.9 million arbitration award in favour of Gamji Nigeria Company Limited.
The order was issued by D.E. Osiagor, judge of the federal high court, following an application by Gamji through its counsel, Yunus AbdulSalam, senior advocate of Nigeria (SAN), in a suit marked FHC/L/CS/1233/2026.
The court directed the banks to preserve $13,924,343.32 and N157.5 million in the state’s accounts pending the determination of Gamji’s motion on notice.
The affected financial institutions 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.
Gamji is seeking to enforce an arbitral award arising from water infrastructure projects it executed for the Osun government in Ilesa west LGA.
In the interim order, the judge directed the banks to immediately restrict withdrawals from the state government’s accounts.
“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 reads.
The court adjourned the case until October 22 for hearing of the motion on notice.
The dispute between Osun state government and Gamji involves two contracts awarded to the company in June 2017 for water infrastructure projects in Ilesa west LGA.
The projects involved the construction of transmission mains and booster pump stations under slot 1, and water reservoirs under slot 2.
The projects were part of a water supply and sanitation programme funded through an Islamic Development Bank loan facility facilitated by the federal ministry of finance.
Gamji said the original value of the slot 1 contract was $15.98 million, while slot 2 was valued at $9.70 million.
According to the company, changes to the engineering designs and variations in the scope of work caused delays and led to revisions of the contract values.
The amended values were put at $20.24 million for slot 1 and $10.95 million for slot 2.
Gamji said it had completed 93 percent of the work by October 2023 and that the state government issued a substantial completion certificate on November 14, 2024.
Disagreements later arose over claims relating to extensions of time, price adjustments and increased costs of materials and labour.
Gamji said the state government rejected its claims, leading to unsuccessful mediation attempts and the issuance of an arbitration notice on April 3, 2025.
The state government subsequently accepted the arbitration process and nominated its arbitrator, with preliminary proceedings held in Lagos on May 15, 2025.
On July 24, 2026, the arbitral panel issued its final award, directing the Osun state government to pay Gamji $13,924,343.32 and N157.5 million in reimbursable arbitration fees.
The panel also awarded 20 percent annual interest on any outstanding balance after the expiration of the compliance period.
Gamji said the compliance deadline expired on August 24 without payment by the Osun state government, prompting the company to approach the federal high court.
However, the Osun state government has asked the federal high court to set aside the order.
In a statement issued on Sunday, Kolapo Alimi, commissioner for information and public enlightenment, said the state had filed an application seeking to vacate the ex-parte order issued on September 9.
Alimi alleged that the order was obtained through “fraud, deceit and concealment of material facts”.
He also described the arbitration award as “rigged, dishonest and fake”, alleging that the process was “deliberately mismanaged and fraudulently handled” in favour of Gamji.
According to the commissioner, the state government was denied a fair hearing and full participation in the arbitration proceedings.
He said the state government’s lawyers initially filed a suit challenging the award but later discontinued the case.
Alimi said a fresh suit was subsequently filed at the Lagos state high court on September 1, seeking to set aside the award on the grounds that Lagos was the seat of the arbitration.
He said Osun state government also filed an application asking the Lagos state high court to suspend enforcement of the award pending the determination of its challenge.
According to him, the court processes were served on Gamji and its lawyers. He alleged that the company subsequently approached the federal high court to enforce the same award despite being aware that it was already being challenged before the Lagos state high court.
The commissioner said Gamji failed to disclose the pending Lagos suit and the application seeking to suspend enforcement of the award when it approached the federal high court.
He said the alleged non-disclosure resulted in the ex-parte order of September 9, adding that the state was pursuing the necessary legal steps to challenge the arbitration award.
Alimi said since the matter is before the court, the state government would refrain from making further comments on the merits of the case.
