The Federal High Court in Lagos has ordered commercial banks to place a "Post No Debit" restriction on bank accounts operated by the Osun State Government following its failure to pay a **$13.9 million arbitration award** to Gamji Nigeria Company Limited.

 

The interim order, granted by Justice Daniel Osiagor, aims to preserve funds across the state's accounts pending the full enforcement of the arbitral decision.

 

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#### **Timeline of the Dispute & Arbitration**

 

The financial standoff stems from contract adjustments during the execution of major infrastructure works:

 

* **Project Substantial Completion:** Gamji reported that approximately 93% of project works were completed by October 2023, leading the Osun State Government to issue a Substantial Completion Certificate on November 14, 2024.

* **Contract Disagreements:** Disagreements subsequently emerged over contractor claims regarding project time extensions, price adjustments, and escalating costs of materials and labor.

* **Failed Mediation & Arbitration:** After state officials rejected the claims and private mediation stalled, Gamji issued a formal arbitration notice on April 3, 2025. Both parties appointed arbitrators, leading to preliminary proceedings in Lagos on May 15, 2025.

* **The Final Award:** On July 24, 2026, the arbitral panel ruled in favor of Gamji, ordering Osun State to pay **$13,924,343.32** alongside **₦157.5 million** in reimbursable arbitration expenses, with a 20% annual interest penalty for late compliance.

 

#### **Court Intervention & Account Restrictions**

 

According to court filings, the deadline for compliance expired on August 24, 2026, without payment from the state government. Gamji subsequently filed an urgent application at the Federal High Court to secure state funds.

 

Justice Osiagor directed financial institutions to restrict withdrawals from relevant state accounts to the extent required to cover the judgment sum. The court adjourned the matter until **October 22, 2026**, to hear the substantive motion on notice.