The Federal High Court in Lagos has mandated commercial banks to impose a "Post No Debit" restriction on the accounts of the Osun State Government. This ruling comes in light of a $13.9 million arbitration award granted to Gamji Nigeria Company Limited. The interim order was issued by Justice D.E. Osiagor after Gamji's counsel, Yunus AbdulSalam, SAN, filed an application in a case designated FHC/L/CS/1233/2026.

The court's decision aims to safeguard the sum of $13,924,343.32 and N157.5 million awarded to Gamji following arbitration related to water infrastructure projects in the Ilesa West Local Government Area of Osun State. A certified copy of the ruling was obtained by Sunday PUNCH on October 4, 2026.

The financial institutions affected by this order include major banks such as 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 conflict originated from contracts awarded to Gamji by the Osun State Government in June 2017, which involved the construction of water supply infrastructure, including transmission mains and booster pump stations, as well as water reservoirs. These projects were financed through a loan from the Islamic Development Bank, facilitated by the Federal Ministry of Finance.

Initially, the contract values were set at $15.98 million for the first phase and $9.70 million for the second phase. However, due to engineering design changes and variations in project scope, costs escalated, leading to revised contract values of $20.24 million and $10.95 million, respectively. Gamji reported that by October 2023, it had completed 93 percent of the work, with the state government issuing a Substantial Completion Certificate on November 14, 2024.

Disputes arose over claims for time extensions, price adjustments, and increased material and labor costs. Gamji alleged that the state government rejected its claims, resulting in unsuccessful mediation attempts. Consequently, an arbitration notice was issued on April 3, 2025, which the state government accepted, nominating its arbitrator for the proceedings that commenced on May 15, 2025.

The arbitral panel ultimately ruled on July 24, 2026, ordering the Osun State Government to pay the awarded amount along with 20 percent annual interest on any outstanding balance after the compliance period. Gamji noted that the deadline for compliance lapsed on August 24, 2026, without any payment from the state government, prompting the court application.

In his ruling, Justice Osiagor instructed the banks to promptly impose the restrictions on the state government’s accounts to preserve the awarded funds until the motion on notice is resolved. The court has scheduled the next hearing for October 22, 2026, to further address the motion on notice.