Osun Moves to Vacate Court Order Freezing State Accounts, Challenges Gamji Arbitration Award
Reloaded News Desk
OSOGBO — The Osun State Government has filed an application before the Federal High Court in Lagos seeking to set aside an interim order restricting transactions on some of its bank accounts in connection with a $13.9 million arbitration award in favour of Gamji Nigeria Company Limited.
The State Government said the application, filed on October 2, 2026, was based on what it described as alleged deceit, concealment of material facts and other legal grounds surrounding the application through which the restriction order was obtained.
The Federal High Court in Lagos had ordered several commercial banks to place a “Post No Debit” restriction on accounts operated by the Osun State Government, pending the hearing and determination of Gamji’s substantive application.
The order, made by Justice D.E. Osiagor in suit No. FHC/L/CS/1233/2026, seeks to preserve funds up to $13,924,343.32 and ₦157.5 million in connection with an arbitral award arising from water infrastructure projects in Ilesa West Local Government Area. The matter is adjourned to October 22, 2026.
In a statement signed by the Commissioner for Information and Public Enlightenment, Oluomo Kolapo Alimi, on Sunday, the State Government said it was challenging both the enforcement process and the underlying arbitral award.
The government alleged that Gamji failed to disclose to the Federal High Court that the validity of the arbitral award was already being challenged before the Lagos State High Court.
According to the statement, Osun’s legal team filed proceedings at the Lagos State High Court on September 1, 2026, seeking to set aside the award. The government said it also filed a motion on notice seeking to suspend execution of the award pending the determination of the challenge.
The State Government further claimed that the relevant court processes had been served on Gamji and its counsel before the company approached the Federal High Court.
Osun therefore argued that Gamji was aware that the award was being challenged when it sought the Federal High Court order to preserve funds in the State Government’s accounts.
The State Government also challenged the circumstances surrounding the arbitration itself.
It said the dispute originated from contracts awarded in 2017 during the administration of former Governor Gboyega Oyetola for water infrastructure projects in Ilesa West.
According to the government, the dispute involved Gamji’s request for variation of the contract and a claim concerning whether the State Government was indebted to the company in the sum of $15,982,638.22.
The government alleged that the arbitration proceedings were improperly handled and that the State was denied fair hearing and full participation.
It said the alleged irregularities in the proceedings and the final award had already been placed before the Lagos State High Court for judicial determination.
The State Government also disputed the chronology and description of the arbitral award referred to in the Federal High Court proceedings, stating that there was no arbitral award against it in July 2024.
It clarified that the award it is challenging was made in July 2026, specifically on July 24, 2026.
The July 24 award is the same award reported in the Federal High Court proceedings as directing Osun to pay Gamji $13,924,343.32 and ₦157.5 million in reimbursable arbitration fees, with provision for 20 per cent annual interest on any outstanding amount after the stipulated compliance period.
The State Government said its legal team would continue to pursue the challenge to the award and the application seeking to vacate the Federal High Court’s interim order.
It maintained that the matter was sub judice and said it would refrain from making comments that could prejudice the proceedings.
The government’s latest position introduces a second layer to the dispute: while Gamji is seeking to preserve funds and enforce the July 2026 arbitral award, Osun says the validity of that award is itself before the Lagos State High Court.
The Federal High Court’s restriction is presently an interim preservation order, rather than a final determination of the parties’ substantive dispute.
The next significant development is expected from the courts, with the Federal High Court matter scheduled for October 22, 2026, while the State Government’s challenge to the arbitral award remains pending before the Lagos State High Court.
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