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 over a $13.9 million arbitration award in favour of Gamji Nigeria Company Limited.
Justice D.E. Osiagor issued the interim order following an application by Gamji, which is seeking to preserve $13,924,343.32 and N157.5 million awarded to the company in a dispute arising from water infrastructure projects in Ilesa West Local Government Area.
The company said the dispute followed two contracts awarded by the Osun State Government in 2017 for the construction of water infrastructure, with disagreements later arising over project variations, extensions of time and increased costs.
According to Gamji, an arbitration panel issued its final award on July 24, 2026, directing the state government to pay the awarded sums, including reimbursable arbitration fees. The company said the payment deadline expired on August 24 without settlement.
The court directed the listed banks to preserve funds up to the value of the award pending the hearing and determination of the substantive application.
The matter has been adjourned until October 22, 2026, for hearing.
