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Gamji secures post-no-debt order exceeding $13.9 million, N157.5 million
…Osun asks Court to quash order, alleges fraud and concealment
Daud Olatunji
A Federal High Court sitting in Lagos has ordered commercial banks to impose a “post no debit” restriction on accounts managed by the Osun State Government over a $13.9 million and 157.5 million naira arbitration award to Gamji Nigeria Company Limited.
The order, issued by Justice D E Osiagor, directs the affected banks to withhold $13,924,343.32 and N157.5 million in state government accounts pending the hearing and decision on Gamji’s notice motion.
The order followed an application made by Gamji through his lawyer, Senior Advocate of Nigeria, Yunus AbdulSalam, in case number FHC/L/CS/1233/2026.
Among the financial institutions directed to limit withdrawals from government accounts are 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 development stems from a long-running contractual dispute between Gamji and the Osun State Government over water infrastructure projects executed in Ilesa West Local Government Area.
In the interim order, the court ordered the banks to immediately retain the funds in the state’s accounts to secure the arbitration award, which Gamji claims has become due and enforceable.
The court also ordered that the restriction remain in force pending a decision on the substantive application.
The case was adjourned to October 22, 2026 for the hearing of the warning application.
The controversy dates back to June 2017, when the Osun State Government awarded Gamji two contracts for water infrastructure projects in Ilesa West.
The projects, financed under a water supply and sanitation program supported by an Islamic Development Bank concessional loan facility through the Federal Ministry of Finance, involved the construction of transmission pipelines and booster pumping stations in Slot 1 and water tanks in Slot 2.
Gamji said the original contract value for Slot 1 was $15.98 million, while Slot 2 was valued at $9.70 million.
The company later said that changes to technical designs, changes in the scope of work and other factors had resulted in delays and revisions to contract values.
The amended contract values were reportedly set at $20.24 million for Slot 1 and $10.95 million for Slot 2.
According to Gamji, by October 2023 it had completed about 93% of the projects, with the Osun state government issuing a substantial certificate of completion on November 14, 2024.
However, disagreements later emerged over claims related to time extensions, price adjustments, and increased material and labor costs.
Gamji said his claims were rejected by the state government, prompting attempts at mediation.
After mediation efforts failed, the company issued an arbitration notice dated April 3, 2025.
The state government subsequently agreed to the arbitration process and appointed its own arbitrator, with a preliminary proceeding held in Lagos on 15 May 2025.
On July 24, 2026, the arbitration panel issued its final award ordering the Osun State Government to pay Gamji $13,924,343.32 and N157.5 million in refundable arbitration fees.
The committee also reportedly imposed 20% annual interest on any remaining balance after the compliance period expires.
Gamji said the deadline for compliance expired on August 24 without any payment from the state government.
The company then approached the Federal High Court in Lagos to enforce the ruling, which led to the attachment order on the state’s bank accounts.
But the Osun State Government has rejected the circumstances surrounding the enforcement proceedings and is asking the court to quash the order.
Information and Public Information Commissioner Kolapo Alimi said the state had filed an appeal against the ex parte order issued on September 9.
Alimi said the order was obtained through “fraud, deception and concealment of material facts.”
The commissioner further described the arbitration award as “rigged, dishonest and false”, claiming that the arbitration process was deliberately mismanaged in favor of Gamji.
The allegations, however, remain claims of the state government and are subject to decision by the courts.
According to Alimi, the state government was denied a fair hearing and full participation in the arbitration proceedings.
He said the state’s lawyers had initially initiated proceedings challenging the award, but later dropped the case.
The commissioner explained that Osun subsequently filed a fresh suit before the Lagos State High Court on September 1, seeking to set aside the arbitration award on the grounds that Lagos was the seat of the arbitration.
The State also filed an appeal requesting that enforcement of the award be suspended pending a decision on its challenge.
Alimi said court processes had been served on Gamji and his lawyers.
It said that despite being aware of the pending appeal, Gamji subsequently approached the Federal High Court seeking enforcement of the same award.
The commissioner further said Gamji failed to disclose the pending Lagos State High Court proceedings and the stay of execution application when he approached the Federal High Court.
According to him, the alleged failure to disclose led to the ex parte attachment order.
The state government, he said, is taking all necessary legal steps to challenge both the arbitral award and the enforcement order.
Alimi said the government would refrain from further comment on the merits of the dispute because the matter is now being considered by the courts.
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