A Federal High Court sitting in Lagos has directed 11 commercial banks to place Post No Debit restrictions on all accounts belonging to the Osun State Government, freezing withdrawals until a $13.9 million arbitration award in favour of Gamji Nigeria Company Limited is settled. The interim order, issued by Justice D.E. Osiagor, follows the state government's failure to meet an August 24, 2026 payment deadline tied to the arbitral award.
Court Order Names 11 Banks in Freeze Directive
According to a report by The Punch on Sunday, October 4, 2026, Justice Osiagor issued the order on an application brought by Gamji through its counsel, Yunus AbdulSalam (SAN), in suit FHC/L/CS/1233/2026. A certified true copy of the ruling was obtained on Saturday, October 3. The banks named in the order 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.
Each institution is directed to immediately place a Post No Debit restriction on any Osun State Government account in its custody. The court order read in part: "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."
Water Infrastructure Contracts Trace to 2017
The dispute traces back to June 2017, when the Ademola Adeleke-led Osun State Government awarded Gamji two contracts for water infrastructure works in Ilesa West Local Government Area. The projects covered the construction of transmission mains and booster pump stations under Slot 1, and water reservoirs under Slot 2, as part of a water supply and sanitation initiative funded through an Islamic Development Bank loan facilitated by the Federal Ministry of Finance.
Original contract values stood at $15.98 million for Slot 1 and $9.70 million for Slot 2. Engineering design changes and scope variations later pushed those figures to $20.24 million and $10.95 million respectively. Gamji said 93 per cent of the work had been completed by October 2023, and the state government issued a Substantial Completion Certificate on November 14, 2024.
Arbitration Award and Enforcement Proceedings
Disputes then emerged over claims for time extensions, price adjustments, and rising material and labour costs. The state government rejected Gamji's claims, mediation efforts failed, and an arbitration notice was issued on April 3, 2025. The state government accepted the process and nominated its arbitrator, with preliminary proceedings held in Lagos on May 15, 2025.
The arbitral panel delivered its final award on July 24, 2026, directing the Osun State Government to pay $13,924,343.32 and N157.5 million in reimbursable arbitration fees, with 20 per cent annual interest on any unpaid balance after the compliance window closed. That deadline passed on August 24, 2026, without any payment, prompting Gamji to approach the Federal High Court. In granting the application, Justice Osiagor directed the listed banks to act immediately, preserving funds in the state government's accounts up to the full value of the award. The suit has been adjourned to October 22, 2026, for a hearing on the motion on notice.
