Osun Challenges Accounts Restriction Over $13.9m Arbitration Award

The Osun State Government has challenged an ex parte order restricting its bank accounts over a $13.9 million arbitration award in favour of Gamji Nigeria Company Limited.

The state government said on Sunday that it had filed an application before the Federal High Court in Lagos seeking to set aside the order and protect its rights in the dispute.

The government also said it had commenced legal action to vacate the order and subject the arbitration award to judicial review.

Justice D.E. Osiagor had issued the interim order following an application filed by Gamji through its counsel, Yunus AbdulSalam, SAN, in a suit marked FHC/L/CS/1233/2026.

However, the Osun State Government, in a statement signed by the Commissioner for Information and Public Enlightenment, Kolapo Alimi, disputed the basis of the order and the validity of the arbitration award.

The government alleged that the order was obtained through non-disclosure of material facts and maintained that the award Gamji sought to enforce was affected by several irregularities.

According to the statement, the government’s legal team had already approached the Lagos State High Court to challenge the award before Gamji filed its application before the Federal High Court.

“In fact, it was reported that the purported award which the ex parte order of 9th September, 2026, referenced does not exist as there was no arbitral award made against the state government in July 2024.

“The only arbitral award against the state government was in July 2026, and the said award is presently being challenged before the Lagos State High Court by the state government’s legal team,” the statement said.

The state government traced the dispute to a 2017 contract entered into during the administration of former Governor Adegboyega Oyetola.

It said the administration had rejected a variation request by Gamji, particularly over its claim that the state government was indebted to the company to the tune of $15,982,638.22.

The government said the dispute subsequently proceeded to arbitration but alleged that the process was improperly handled and that the state was denied a fair hearing and full participation.

It said the alleged irregularities in the arbitration proceedings and the resulting award had been submitted before the Lagos State High Court.

According to the statement, the state government’s counsel filed a suit seeking to set aside the arbitral award at the Lagos State High Court on September 1, 2026, before Gamji approached the Federal High Court.

The government said a motion on notice was also filed alongside the originating motion seeking to suspend execution of the award pending the determination of the suit.

It added that both applications were served on Gamji and its counsel, meaning the company was aware that the award was being challenged.

The statement said, “To the greatest chagrin of the Osun State Government and its legal team, Gamji Nig. Co. Ltd., despite being in receipt of the originating motion and motion on notice filed before the Lagos State High Court to suspend execution of the award, furtively approached the Federal High Court sitting in Lagos State to enforce the award.”

The government further alleged that Gamji failed to disclose to the Federal High Court that the validity of the award was already being challenged before the Lagos State High Court.

It said the company also failed to disclose that it had been served with an application seeking to suspend execution of the award pending the determination of the challenge.

The state government said its motion seeking to set aside the September 9 order had been presented before the Federal High Court.

It added that the issues surrounding the arbitration award and the application before the Lagos State High Court had been brought to the attention of the Federal High Court.

The government, however, said it would refrain from making further comments on the merits of the dispute because the matter remained sub judice.