A Federal High Court in Lagos on Thursday adjourned till November 16, 2026, further hearing in a suit filed by Gamji Nigeria Company Limited against the Osun State Government over the enforcement of an arbitral award arising from the Ilesa water project.

Justice D.E. Osiagor had earlier ordered commercial banks to place a “Post No Debit” restriction on the state government’s accounts over an unpaid arbitration award of $13,924,343.32 and N157.5m in favour of Gamji Nigeria Limited.

Counsel to Gamji, Ola Olanipekun, SAN, told the court that a few days after the order was issued, the Osun State Government approached the state’s High Court and obtained another order varying the earlier directive of the Federal High Court.

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Justice Osiagor directed the banks not to lift the restrictions on the state government’s accounts.

The dispute arose from two contracts awarded in June 2017 for the construction of transmission mains, booster pump stations and reservoirs under the Ilesa water supply scheme.

Gamji had said about 93 per cent of the contracted work was completed by October 2023, adding that the state government issued a substantial completion certificate on November 14, 2024.

An arbitral panel ruled in favour of Gamji on July 24, 2026, ordering the state government to pay the sums, alongside 20 per cent annual interest on outstanding balances.

After the payment deadline expired on August 24, 2026, Justice Osiagor issued an interim ex-parte order directing major Nigerian banks to restrict withdrawals from the state government’s accounts.

The state government, under Governor Ademola Adeleke, subsequently applied to set aside the order, alleging that it was obtained through deceit and the non-disclosure of material facts.

In an earlier public statement, the state government also alleged irregularities in the arbitration proceedings and challenged the process leading to the restriction order.

The government maintains that the contract dispute was inherited from the administration of former Governor Gboyega Oyetola. (Daily Trust)