The Federal High Court in Lagos has arranged commercial banks to place a “Publish No Debit” restriction on accounts operated by the Osun Situation Government over a $13.9m arbitration award in favour of Gamji Nigeria Business Tight.
The enterprise subsequently issued an arbitration attention on April 3, 2025, which the status government accepted, nominating its arbitrator. Preliminary proceedings were later held in Lagos on May 15, 2025.
A certified genuine passage of the ruling was issued to journalists on Saturday.
According to an affidavit filed in approve of the application, the dispute originated from two contracts awarded to Gamji by the Osun Condition Government in June 2017 for water infrastructure projects.
The organization said disputes later emerged over claims relating to extensions of time, price adjustments and increased costs of materials and labour.
Gamji said the compliance deadline expired on August 24, 2026, free from the condition government making the required settlement, prompting the business to strategy the Federal High Court for relief.
The firm is seeking to conserve $13,924,343.32 and N157.5m awarded to it once an arbitration arising from water infrastructure projects executed in Ilesa West Nearby Government Area of Osun Situation.
Gamji continued claimed that it had completed 93 per cent of the contracted works by October 2023, later than which the status government issued a Considerable Completion Certificate on November 14, 2024.
According to Gamji, the status government rejected the claims, whereas attempts to address the disagreement using mediation failed.
The judge organized the preservation of resources up to $13,924,343.32 and N157.5m towards enjoyable the arbitral award pending the determination of the motion on announcement.
The arbitral panel in time delivered its final award on July 24, 2026, directing the Osun Condition Government to spend Gamji $13,924,343.32 and N157.5m in reimbursable arbitration fees.
In his ruling, Justice Osiagor directed the listed financial institutions to immediately command transactions on the affected Osun Condition Government accounts.
The financial institutions listed in the command protect Guaranty Trust Bank, Entry Bank, Initial Bank, Zenith Bank, United Bank for Africa, Ecobank, Fidelity Bank, Stanbic IBTC, Sterling Bank, Union Bank and Wema Bank, amid others.
Osiagor granted the interim command following an application filed by Gamji throughout its pursue guidance, Yunus AbdulSalam, SAN, in a suit marked FHC/L/CS/1233/2026.
Justice D.E.
Gamji said the projects were financed by route of an Islamic Development Bank loan facility facilitated by the Federal Ministry of Assist.
It said subsequent engineering format changes and variations in the extent of labor resulted in delays and revisions to the project costs.
Following the amendments, the value of Slot 1 increased to $20.24m, whereas Slot 2 rose to $10.95m.
The contracts covered the construction of transmission mains and booster pump stations under Slot 1, as well as water reservoirs under Slot 2, under a water provide and sanitation project in Ilesa West.
The panel moreover awarded occupy at an annual rate of 20 per cent on any outstanding quantity later than the expiration of the stipulated compliance period.
The business stated that the initial value of the Slot 1 contract was $15.98m, whereas Slot 2 was valued at $9.70m.
“A preservation command of interim injunction is granted directing the cited financial institutions in Nigeria to immediately place a Share No Debit restriction on the Respondent’s account domiciled alongside them for the preservation of the resources alongside 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 announcement,” the court stated.
The court adjourned the subject till October 22, 2026, for hearing of the motion on observe.
Court orders banks to freeze Osun accounts over $13.9m arbitration award
Source: Court orders banks to freeze Osun accounts over $13.9m arbitration award
