Justice D.E. Osiagor granted the interim order following an application filed by Gamji through its counsel, Yunus AbdulSalam, SAN, in a suit marked FHC/L/CS/1233/2026.
The company is seeking to preserve $13,924,343.32 and ₦157.5 million awarded to it following an arbitration arising from water infrastructure projects executed in Ilesa West Local Government Area of Osun State.
The financial institutions listed in the order 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, among others.
According to an affidavit filed in support of the application, the dispute arose from two contracts awarded to Gamji by the Osun State Government in June 2017 for water infrastructure projects in Ilesa West.
The contracts involved the construction of transmission mains and booster pump stations under Slot 1 and water reservoirs under Slot 2 as part of a water supply and sanitation project.
Gamji said the projects were financed through an Islamic Development Bank loan facility facilitated by the Federal Ministry of Finance.
The company stated that the initial value of the Slot 1 contract was $15.98 million, while Slot 2 was valued at $9.70 million.
It said subsequent engineering design changes and variations in the scope of work led to delays and revisions to the project costs, with Slot 1 eventually increasing to $20.24 million and Slot 2 rising to $10.95 million.
Gamji further claimed that it had completed 93 per cent of the contracted works by October 2023, after which the state government issued a Substantial Completion Certificate on November 14, 2024.
Disagreements later emerged over claims relating to extensions of time, price adjustments and increased costs of materials and labour.
According to the company, the Osun State Government rejected the claims, while efforts to resolve the dispute through mediation failed.
Gamji subsequently issued an arbitration notice on April 3, 2025, which the state government accepted before nominating its arbitrator. Preliminary proceedings were later held in Lagos on May 15, 2025.
The arbitral panel delivered its final award on July 24, 2026, directing the Osun State Government to pay Gamji $13,924,343.32 and ₦157.5 million in reimbursable arbitration fees.
The panel also awarded interest at an annual rate of 20 per cent on any outstanding amount after the stipulated compliance period.
Gamji said the compliance deadline expired on August 24, 2026, without the state government making the required payment, prompting the company to approach the Federal High Court for enforcement-related relief.
In his ruling, Justice Osiagor directed the listed financial institutions to immediately restrict transactions on the affected Osun State Government accounts.
The judge ordered the preservation of funds up to $13,924,343.32 and ₦157.5 million towards satisfying the arbitral award pending the determination of the motion on notice.
The court stated: “A preservation order of interim injunction is granted directing the cited financial institutions in Nigeria to immediately place a Post No Debit restriction on the Respondent’s account domiciled with them for the preservation of the funds with them in the sum of $13,924,343.32 and N157,500,000.00 towards the liquidation of the Arbitral Award dated 24th July, 2026 which has become due and enforceable, pending the hearing and determination of the motion on notice.”
The court adjourned the matter until October 22, 2026, for hearing of the motion on notice.
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