Federal High Court Orders ‘Post No Debit’ Restriction as Gamji Seeks Enforcement of Ilesa Water Project Award
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 preservation order following an application by Gamji through its counsel, Yunus AbdulSalam, SAN, in suit No. FHC/L/CS/1233/2026.
The company is seeking to recover $13,924,343.32 and N157.5 million awarded to it following an arbitration arising from water infrastructure projects in Ilesa West Local Government Area.
The affected banks include GTBank, Access Bank, First Bank, Zenith Bank, UBA, Ecobank, Fidelity Bank, Stanbic IBTC, Sterling Bank, Union Bank and Wema Bank, among others.
Gamji said it was awarded two contracts by the Osun State Government in June 2017 for the construction of transmission mains, booster pump stations and water reservoirs under a water supply and sanitation project.
According to the company, the projects were funded through an Islamic Development Bank loan facility facilitated by the Federal Ministry of Finance. It said subsequent design changes and variations increased the contract values to $20.24 million and $10.95 million.
Gamji claimed that 93 per cent of the projects had been completed by October 2023, with the state government issuing a Substantial Completion Certificate in November 2024.
Disputes later arose over extensions of time, price adjustments and increased material and labour costs. After mediation efforts failed, arbitration proceedings commenced in 2025.
The arbitral panel issued its final award on July 24, 2026, directing Osun State to pay $13,924,343.32 and N157.5 million in reimbursable arbitration fees, with 20 per cent annual interest on any outstanding balance after the compliance period.
Gamji said the August 24 compliance deadline expired without payment, prompting the court application.
Justice Osiagor subsequently directed the listed banks to preserve funds in the state government’s accounts up to the awarded amounts pending the hearing and determination of the motion on notice.
The suit was adjourned to October 22, 2026, for hearing of the motion on notice.