..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.
The state government subsequently accepted the arbitration process and nominated its arbitrator, with preliminary proceedings held in Lagos on May 15, 2025.
On July 24, 2026, the arbitral panel reportedly delivered its final award directing the Osun State Government to pay Gamji $13,924,343.32, alongside N157.5m in reimbursable arbitration fees.
The panel also reportedly imposed 20 per cent annual interest on any outstanding balance after the expiration of the compliance period.
Gamji said the compliance deadline expired on August 24, 2026, without payment by the state government.
The company subsequently approached the Federal High Court in Lagos to enforce the award, resulting in the preservation order against the state’s bank accounts.
But the Osun State Government has rejected the circumstances surrounding the enforcement proceedings and has asked the court to vacate the order.
The Commissioner for Information and Public Enlightenment, Kolapo Alimi, said the state had filed an application challenging the ex-parte order issued on September 9.
Alimi alleged that the order was obtained through “fraud, deceit and concealment of material facts.”
The commissioner also described the arbitration award as “rigged, dishonest and fake,” alleging that the arbitration process was deliberately mismanaged in favour of Gamji.
The allegations are, however, claims by the state government and remain subject to determination by the courts.
According to Alimi, the state government was denied fair hearing and full participation in the arbitration proceedings.
He said the state’s lawyers had initially commenced proceedings challenging the award but later discontinued 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 arbitral award on the ground that Lagos was the seat of the arbitration.
The state also filed an application seeking to suspend enforcement of the award pending determination of its challenge, he said.
Alimi said the relevant court processes were served on Gamji and its lawyers.
He alleged that despite being aware of the pending challenge, Gamji subsequently approached the Federal High Court seeking enforcement of the same award.
The commissioner further alleged that Gamji failed to disclose the pending Lagos State High Court proceedings and the application seeking suspension of enforcement when it approached the Federal High Court.
According to him, the alleged non-disclosure resulted in the ex-parte preservation order.
The state government, he added, was taking all necessary legal steps to challenge both the arbitration award and the enforcement order.
Alimi said the government would refrain from making further comments on the merits of the dispute because the matter was now before the courts.
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