Osun Govt finally speaks As Court orders banks to freeze state accounts

The Osun State Government has said it has filed an application before the Federal High Court in Lagos seeking to set aside the ex parte order restricting transactions on accounts operated by the state government over a $13.9 million arbitration award in favour of Gamji Nigeria Company Limited.

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The government also assured the public that it had commenced necessary legal steps to vacate the order and protect the state’s interests through a judicial review of the arbitration award.

In a statement issued on Sunday and signed by the Commissioner for Information and Public Enlightenment, Kolapo Alimi, the government described the order as having been obtained through what it called non-disclosure of material facts to the court.

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According to the statement, the arbitration award Gamji sought to enforce was also allegedly affected by several irregularities, prompting the state government’s legal team to approach the Lagos State High Court to challenge the award.

The government said the ex parte order of September 9, 2026 referenced an alleged arbitral award, but maintained that no such award was made against the state government in July 2024.

It clarified that the only arbitral award against the state government was issued in July 2026 and that the award was already being challenged by the government before the Lagos State High Court.

The government traced the dispute to a 2017 contract awarded during the administration of former Governor Adegboyega Oyetola. It said the administration rejected a variation request by Gamji, particularly over the company’s claim that the state was indebted to it in the sum of $15,982,638.22.

The matter subsequently proceeded to arbitration, which the state government alleged was improperly handled in favour of Gamji, while the state was denied a fair hearing and full participation in the process.

The government said its legal team had already filed a suit at the Lagos State High Court on September 1, 2026, seeking to set aside the arbitral award before Gamji approached the Federal High Court.

It added that a motion on notice seeking to suspend enforcement of the award pending the determination of the suit was also filed and served on Gamji and its counsel.

According to the state government, Gamji was therefore aware that the award was being challenged before a competent court when it approached the Federal High Court to seek enforcement.

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 and that the company had been served with an application seeking to suspend enforcement pending the determination of the case.

The state government disclosed that it had also filed a motion on notice seeking to set aside the September 9 order and informed the Federal High Court of the circumstances surrounding the arbitration proceedings and the pending challenge.

It, however, said it would refrain from making further comments on the merits of the case because the matter remains sub judice.

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