The Federal High Court in Lagos has ordered commercial banks to place a Post No Debit restriction on accounts operated by the Osun State Government, preserving funds up to $13,924,343.32 and ₦157.5 million in connection with an arbitral award obtained by Gamji Nigeria Company Limited.
![](https://thenigerialawyer.com/wp-content/uploads/2026/09/2026-IDRI-Masterclass.png")
Justice D.E. Osiagor granted the interim preservation order following an application filed by Gamji through its counsel, Yunus AbdulSalam, SAN, in suit number FHC/L/CS/1233/2026.
The order directs the affected financial institutions to prevent debit transactions from Osun State Government accounts maintained with them to the extent necessary to preserve the sums covered by the July 24, 2026 arbitral award, pending the hearing and determination of Gamji’s substantive motion on notice.
The banks cited in the application 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 told the court that the dispute arose from two contracts awarded to it by the Osun State Government in June 2017 for water infrastructure projects in Ilesa West Local Government Area.
According to the affidavit supporting the application, one of the contracts, identified as Slot 1, covered the construction of transmission mains and booster pump stations, while Slot 2 involved the construction of water reservoirs as part of a wider water supply and sanitation project.
The company said the projects were to be financed through a loan obtained from the Islamic Development Bank and arranged through the Federal Ministry of Finance.
Gamji stated that the initial contract value for Slot 1 was approximately $15.98 million, while Slot 2 was valued at about $9.70 million.
It alleged that changes in engineering designs, expansion of the scope of the works and subsequent variation orders resulted in delays as well as increases in the amounts payable under the contracts.
According to the company, amendments subsequently increased the value of Slot 1 to about $20.24 million and that of Slot 2 to approximately $10.95 million.
Gamji further claimed that approximately 93 per cent of the contracted works had been completed by October 2023 and that the Osun State Government issued a Substantial Completion Certificate on November 14, 2024.
However, disagreements later arose between the company and the state government over claims relating to extensions of time, price adjustments and increased costs of materials, labour and other inputs.
Gamji said it submitted various claims to the state government but that the claims were rejected.
According to the company, efforts were thereafter made to resolve the disagreement through mediation before it issued a formal notice of arbitration on April 3, 2025.
It said the state government accepted the arbitration process and nominated an arbitrator, following which the arbitral panel commenced proceedings.
A preliminary meeting was held in Lagos on May 15, 2025.
Gamji said the tribunal eventually delivered its final award on July 24, 2026, directing the Osun State Government to pay it $13,924,343.32 alongside ₦157.5 million described as reimbursable arbitration fees.
The company further stated that the award provided for interest at the rate of 20 per cent per annum on any outstanding portion of the liability after expiration of the period allowed for compliance.
According to Gamji, the deadline for compliance expired on August 24, 2026, without the awarded sums being paid, prompting its approach to the Federal High Court for preservatory reliefs.
Justice Osiagor subsequently granted the interim injunction directing the cited financial institutions to immediately place a Post No Debit restriction on the state government’s accounts.
The order reads in part:
“That 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 is interim and does not amount to a final determination of any substantive challenge the Osun State Government may raise against the arbitral award or Gamji’s enforcement proceedings.
The court adjourned the matter until October 22, 2026, for hearing of the motion on notice.
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