Gamji Secures Post-No-Debit Order Over $13.9m, N157.5m
…Osun Asks Court To Vacate Order, Alleges Fraud, Concealment
Daud Olatunji
A Federal High Court sitting in Lagos has ordered commercial banks to place a “post no debit” restriction on accounts operated by the Osun State Government over a $13.9m and N157.5m arbitration award in favour of Gamji Nigeria Company Limited.
The order, issued by Justice D.E. Osiagor, directs the affected banks to preserve $13,924,343.32 and N157.5m in the state government’s accounts pending the hearing and determination of Gamji’s motion on notice.
The order followed an application filed by Gamji through its counsel, Senior Advocate of Nigeria, Yunus AbdulSalam, in suit number FHC/L/CS/1233/2026.
Among the financial institutions directed to restrict withdrawals from the state’s 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 protracted 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 directed the banks to immediately preserve funds in the state’s accounts to secure the arbitral award, which Gamji contends has become due and enforceable.
The court also ordered that the restriction remain in place pending the determination of the substantive application.
The matter has been adjourned until October 22, 2026, for hearing of the motion on notice.
The dispute dates back to June 2017, when the Osun State Government awarded two contracts to Gamji for water infrastructure projects in Ilesa West.
The projects, funded under a water supply and sanitation programme supported by an Islamic Development Bank loan facility facilitated through the Federal Ministry of Finance, covered the construction of transmission mains and booster pump stations under Slot 1 and water reservoirs under Slot 2.
Gamji said the original value of the Slot 1 contract was $15.98m, while Slot 2 was valued at $9.70m.
The company subsequently claimed that changes to engineering designs, variations in the scope of work and other factors resulted in delays and revisions to the contract values.
The amended contract values were reportedly put at $20.24m for Slot 1 and $10.95m for Slot 2.
According to Gamji, it had completed about 93 per cent of the projects by October 2023, with the Osun State Government issuing a substantial completion certificate on November 14, 2024.
However, disagreements later emerged over claims relating to extension of time, price adjustments and increased costs of materials and labour.
Gamji said its claims were rejected by the state government, prompting attempts at mediation.
When the mediation efforts failed, the company issued an arbitration notice on April 3, 2025.
