The Federal High Court in Lagos has ordered commercial banks to place a Post No Debit restriction on all bank accounts operated by the Osun State Government.
Justice D.E. Osiagor gave the interim order following an application filed by Gamji Nigeria Company Limited over an unpaid arbitration award of $13,924,343.32 and N157.5 million.
The company, through its counsel, Yunus AbdulSalam, SAN, filed the suit marked FHC/L/CS/1233/2026 to preserve the funds pending enforcement of the award.
The affected banks 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.
The dispute stems from two contracts awarded to Gamji in June 2017 for water infrastructure projects in Ilesa West Local Government Area, comprising transmission mains and booster pump stations under Slot 1 and water reservoirs under Slot 2.
The projects were funded through an Islamic Development Bank loan facility facilitated by the Federal Ministry of Finance.
The original contract sums were $15.98 million for Slot 1 and $9.70 million for Slot 2, but design changes and scope variations later increased them to $20.24 million and $10.95 million respectively.
Gamji said it had completed 93 per cent of the work as of October 2023, with the state issuing a Substantial Completion Certificate on November 14, 2024.
Disagreements later arose over extension of time, price adjustments and rising cost of materials and labour, which the state government rejected. Mediation failed and Gamji issued an arbitration notice on April 3, 2025.
The arbitral tribunal delivered its award on July 24, 2026, ordering Osun to pay $13,924,343.32 plus N157.5 million for arbitration costs, with 20 per cent annual interest on any unpaid balance after the compliance window.
The compliance deadline of August 24, 2026 lapsed without payment, prompting Gamji to approach the court to secure the funds.
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