The EFCC alleged that Yari masterminded the fraudulent diversion of the funds from the NGF's bank account.
Justice Nnamdi Dimgba gave the interim forfeiture order in a ruling delivered on June 30, 2017.
The judge also gave a 14-day ultimatum to any person (s) or body with interest in the funds to show cause why an order of final forfeiture of the funds to the Federal Government should not be made.
The Economic and Financial Crimes Commission (EFCC) had said it recovered the monies from First Generation Mortgage Bank Limited, and Gosh Projects Limited.
The two firms were allegedly linked to the Governor of Zamfara State and Chairman of the Nigeria Governors' Forum (NGF), Abdulaziz Yari.
The anti-graft agency alleged that Yari masterminded the fraudulent diversion of the funds from the NGF's bank account.
In an affidavit filed in support of its ex parte application seeking the interim forfeiture of the sums of money, the EFCC claimed that the N500 million was diverted to offset Yari's personal loan obtained from the First Generation Mortgage Bank Limited.
It also alleged that the second firm, Gosh Projects Limited, used most of the proceeds of the alleged loot to purchase of building materials for Yari's 100-room hotel project in Lagos.
Gosh Projects also allegedly used part of the 'looted' funds for the purchase of treasury bills and transfers to offshore accounts.
According to an operative of the EFCC investigating the case, Mr. Osas Azonabor, firms with no contract with the Nigeria Governors' Forum, which was holding the Paris Club refunds in its account on behalf of all the states government, were used to divert about N2.2 billion from the NGF account.
Azonabor alleged that the N500 million, recovered from First Generation Mortgage Bank Limited, was part of the N2.2 billion "fraudulently transferred by the NGF to BINA Consults and Integrated Services Limited on December 23, 2016.
He accused Yari of giving the instruction for the transfer of the N500 million out of the N2.2 billion to the First Generation Mortgage Bank Limited.