The Federal High Court sitting in Lagos has ordered several commercial banks to place a “Post No Debit” restriction on accounts operated by the Osun State Government over an arbitration award of $13.9 million and ₦157.5 million in favour of Gamji Nigeria Company Limited.

Justice D.E. Osiagor issued the interim preservation order following an application filed by Gamji through its counsel, Yunus AbdulSalam, SAN, in a suit marked FHC/L/CS/1233/2026. The company is seeking to preserve funds to facilitate enforcement of the arbitral award.

The dispute arose from water infrastructure projects in Ilesa West Local Government Area of Osun State. According to documents filed in the case, disagreements later emerged over claims involving extensions of time, price adjustments and increased costs of materials and labour.

Gamji said the parties were unable to resolve the dispute through mediation, after which it issued an arbitration notice on April 3, 2025. The Osun State Government accepted the arbitration 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 Gamji $13,924,343.32 and ₦157.5 million in reimbursable arbitration fees. The award also provided for 20 per cent annual interest on any outstanding balance after the stipulated compliance period.

Gamji told the court that the August 24, 2026 deadline for compliance expired without payment of the awarded sums, prompting the company to seek an interim preservation order. The financial institutions 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.

Justice Osiagor consequently directed the affected banks to restrict debit transactions on the Osun State Government accounts and preserve funds up to $13,924,343.32 and ₦157.5 million towards the liquidation of the arbitral award. The court adjourned the matter until October 22, 2026, for hearing of the motion on notice.