Osun Govt Seeks To Vacate Order Freezing Accounts, Accuses Gamji Limited Of Hiding Pending Court Challenge

The Osun State Government has filed an application before the Federal High Court in Lagos seeking to vacate an ex-parte order freezing the state’s accounts, accusing Gamji Nigeria Company Limited of concealing material facts from the court when it obtained the order.

The application, filed on October 2, 2026, seeks to set aside the order made on September 9, 2026, which the state government described as having been “procured by deceit and concealment of material facts.”

The government also argued that the order does not accord with public policy, while challenging the arbitration award which Gamji Nigeria Company Limited relied upon in seeking its enforcement.

In a statement issued on Sunday and signed by the Commissioner for Information and Public Enlightenment, Oluomo Kolapo Alimi, the Osun State Government described the arbitration award as “fraught with several irregularities”.

The government said it is currently being challenged before the Lagos State High Court.

According to the government, the purported arbitral award referenced in the September 9 Federal High Court order does not exist, as “there was no Arbitral Award made against the State Government in July 2024.”

It said the only arbitral award against the state was made in July 2026 and that the award is presently being challenged by the state government’s legal team before the Lagos State High Court.

The dispute dates back to a 2017 contract entered into during the administration of former Governor Rauf Aregbesola and inherited by the government of former Governor Gboyega Oyetola, according to the statement.

The government said the dispute began when the then administration denied a variation request by Gamji Nigeria Company Limited, particularly over whether the state was indebted to the company to the tune of $15,982,638.22.

The matter subsequently proceeded to arbitration.

However, the Osun State Government alleged that the arbitration process was “deliberately mismanaged and handled to favour Gamji Nig. Co. Ltd.” and that the state was denied fair hearing and full participation in the process.

“The irregularities that characterized the arbitration proceedings and the Final Arbitral Award are matters which have been submitted by the State Government to the High Court sitting in Lagos State,” the statement said.

The government further disclosed that its legal counsel had filed a suit at the Lagos State High Court on September 1, 2026, seeking to set aside the arbitral award.

It said a motion on notice was also filed alongside the originating motion, seeking to suspend execution of the award until the substantive suit was heard and determined.

According to the government, both the originating motion and the motion on notice were duly served on Gamji and its counsel, meaning that the company was aware that the award was being challenged before the Lagos State High Court.

The government alleged that despite being served with the court processes, Gamji “furtively approached the Federal High Court sitting in Lagos State to enforce the Award.”

It further accused the company of failing to disclose to the Federal High Court that the validity of the award was already being challenged before the Lagos State High Court.

“Gamji Nig. Co. Ltd., when it approached the Federal High Court, failed to disclose the fact that the validity of the Award was being challenged at the Lagos State High Court or that it was served with an application to suspend any action aimed at executing the said Award until the suit challenging the award was heard and determined,” the statement said.

The state government said the alleged non-disclosure was central to its application seeking to set aside the September 9 order.

It disclosed that the motion on notice challenging the order had been presented before the Federal High Court and that the alleged conduct of Gamji had been brought to the attention of the court.

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

“The Osun State Government wishes to reassure the public that necessary legal action is ongoing to vacate the order and ensure the due right of the State is observed by judicial review of the Arbitration Award,” Alimi said.

Earlier, the Federal High Court in Lagos ordered commercial banks to place a “Post No Debit” restriction on bank accounts operated by the Osun State Government over a $13.9m arbitration award in favour of Gamji Nigeria Company Limited.

Justice D.E. Osiagor 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.

The company is seeking to preserve $13,924,343.32 and N157.5m awarded to it following an arbitration proceeding arising from water infrastructure projects in the Ilesa West Local Government Area of Osun State. (SaharaReporters)