The Federal High Court in Lagos has ordered commercial banks to restrict the Osun State Government’s accounts over a $13.9 million arbitration award in favour of Gamji Nigeria Company Limited.
Justice Daniel Osiagor, in a suit marked FHC/L/CS/1233/2026, ordered the affected banks to place a “Post No Debit” restriction on the state government’s accounts.
The order covers up to $13,924,343.32 and ₦157.5 million pending the hearing and determination of Gamji’s motion on notice.
The affected banks include GTBank, Access Bank, First HoldCo, Zenith Bank, United Bank for Africa, Ecobank, Fidelity Bank, Stanbic IBTC, Sterling Bank, Union Bank and Wema Bank, among others.
The restriction followed an application by Gamji seeking to preserve funds in the state government’s accounts pending enforcement of an arbitral award over water infrastructure projects in Ilesa West Local Government Area.
The projects were awarded in 2017 by the Osun State Government under former Governor Adegboyega Oyetola, now the Minister of Marine and Blue Economy.
The contracts covered the construction of transmission mains, booster pump stations and water reservoirs under a water supply and sanitation project funded through an Islamic Development Bank loan facilitated by the Federal Ministry of Finance.
Gamji said changes to the engineering designs and scope of the projects led to increased costs and delays.
The company claimed that about 93 per cent of the work had been completed by October 2023, while the state government issued a Substantial Completion Certificate in November 2024.
A dispute later arose over extensions, price adjustments and increased material and labour costs.
After mediation attempts failed, Gamji commenced arbitration proceedings in April 2025.
The arbitral panel issued its final award on July 24, 2026, directing the Osun government to pay $13.9 million and ₦157.5 million in reimbursable arbitration fees.
Gamji said the payment deadline expired on August 24 without settlement and subsequently approached the Federal High Court for an order preserving the state’s funds.
The court granted the interim application and ordered the banks to restrict withdrawals from the affected accounts. The award also provides for 20 per cent annual interest on any outstanding balance after the deadline.
The order does not finally determine the substantive case. The court adjourned the matter until October 22, 2026, for hearing of the motion on notice.
The Osun State Government has yet to publicly respond to the latest court order.
