Osun Asks Court To Lift $13.9 Million Account Restriction

The Osun State Government has approached the Federal High Court in Lagos, seeking to overturn an interim order restricting transactions on its bank accounts over a $13.9 million arbitration award in favour of Gamji Nigeria Company Limited.

The state government, in a statement issued on Sunday by the Commissioner for Information and Public Enlightenment, Kolapo Alimi, said it had filed an application seeking to set aside the ex parte order and protect the state’s interests through judicial review of the arbitral award.

The development followed an order by Justice D.E. Osiagor directing commercial banks to place a “Post No Debit” restriction on accounts operated by the Osun State Government.

The order was granted after Gamji, through its counsel, Yunus AbdulSalam, SAN, approached the court in a suit marked FHC/L/CS/1233/2026.

The state government faulted the order, alleging that Gamji failed to disclose relevant information to the Federal High Court when seeking the restriction.

According to the government, the order “was a product of deceit and substantial non-disclosure of material facts to the court,” and it also alleged that the arbitration award Gamji sought to enforce was affected by several irregularities.

The government said its legal team had therefore commenced proceedings before the Lagos State High Court to challenge the award.

It stated, “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 government traced the dispute to a contract awarded during the administration of former Governor Adegboyega Oyetola in 2017.

It said disagreements subsequently arose over a variation request submitted by Gamji, particularly concerning an alleged $15,982,638.22 liability.

According to the state, the matter proceeded to arbitration but alleged that the process was improperly handled and that the government was denied a fair opportunity to participate fully.

“The matter proceeded for arbitration, which was deliberately mismanaged and handled to favour Gamji Nig. Co. Ltd., while denying the State Government a fair hearing and full participation in the arbitration process as mandated by best practice in the arbitration process,” the statement said.

Osun said the alleged irregularities in the proceedings and the resulting award were already before the Lagos State High Court for determination.

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

It added that a separate motion was also filed seeking to suspend enforcement of the award pending determination of the substantive case.

According to the government, it served both applications on Gamji and its counsel before the company approached the Federal High Court.

“Both the originating motion and the motion on notice were duly served on Gamji and its Counsel; as such, they were fully aware that the award was being challenged by the State Government,” the statement said.

The state alleged that Gamji subsequently approached the Federal High Court without informing it that the validity of the award was already being contested before the Lagos State High Court.

The government said it had now formally applied to the Federal High Court to discharge the September 9 order restricting its accounts.

It added that the alleged non-disclosure by Gamji had been brought to the Federal High Court’s attention.

“Motion on notice to set aside the order of September 9 has been duly presented before the Court, and the deceptive ploy of Gamji Nig. Co. Ltd. has been relayed to the Federal High Court,” the statement said.

The state government assured residents that it would pursue all available legal avenues to protect its interests, while noting that the matter remained before the courts.

“Since the matter is still sub judice, the State Government refrains from making any prejudicial comments on the merits of the case,” it added.