..Gamji Secures $13.9m, N157.5m Preservation Court Order
…11 Banks Affected As State Faces Enforcement Of Water Contract Award
…Osun Claims Arbitration Was ‘Rigged, Dishonest, Fake
Daud Olatunji
A Federal High Court sitting in Lagos has ordered 11 commercial banks to place a “post-no-debit” restriction on accounts operated by the Osun State Government in a fresh legal battle over a $13.9m and N157.5m arbitration award in favour of Gamji Nigeria Company Limited.
The interim 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.
The affected banks include 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 order effectively places restrictions on withdrawals from the specified accounts pending the determination of the substantive application before the court.
The matter has been adjourned until October 22, 2026, for hearing of the motion on notice.
The dispute arose from a contractual disagreement between Gamji and the Osun State Government over water infrastructure projects executed in Ilesa West Local Government Area.
The projects were reportedly undertaken under a water supply and sanitation programme supported by an Islamic Development Bank loan facility facilitated through the Federal Ministry of Finance.
The contracts, awarded in June 2017, 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 in engineering designs, variations in the scope of work and other factors caused delays and increased the contract values.
The amended contract values were said to have risen to $20.24m for Slot 1 and $10.95m for Slot 2.
Gamji reportedly 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 subsequently emerged over claims involving extension of time, price adjustments and increased costs of materials and labour.
Gamji said its claims were rejected by the state government, leading to attempts at mediation.
When the mediation efforts failed, the company issued an arbitration notice on April 3, 2025.
