Osun reacts to court order freezing accounts over $13.9m award

The Osun State Government has reacted to the Federal High Court order freezing its accounts over a $13.9 million and N157.5 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 before the Federal High Court in Lagos seeking to set aside the ex-parte order.

Alimi said the application was filed on October 2, 2026, alleging that the order was obtained through the concealment of material facts relating to the dispute between the state government and Gamji.

Gamji, a contractor handling a water project in Osun State, had obtained the order directing several commercial banks to place a “Post No Debit” restriction on accounts operated by the state government over the arbitration award.

Osun challenges arbitration award

According to Alimi, the arbitration award Gamji sought to enforce was already being challenged by the state government over what it described as irregularities in the arbitration process.

He said the ex-parte order issued on September 9, 2026, referenced an alleged arbitral award said to have been made against the state in July 2024.

The commissioner, however, maintained that no arbitral award was made against the state government in July 2024.

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

Alimi added that the only arbitral award against the state government was made in July 2026 and was already being challenged before the Lagos State High Court by the state government’s legal team.

Dispute dates back to 2017

Giving the background to the dispute, Alimi said the contractual disagreement dated back to 2017, during the administration of former Governor Gboyega Oyetola, when the state rejected a variation request submitted by Gamji.

He said the dispute centred on whether the state government was indebted to Gamji to the tune of $15,982,638.22.

The commissioner alleged that the arbitration process was “deliberately mismanaged and handled to favour Gamji Nigeria Company Limited,” while the state government was allegedly denied fair hearing and full participation in the proceedings.

Alimi said the state government had challenged the alleged irregularities in the arbitration proceedings and the final arbitral award before the Lagos State High Court.

He disclosed that the state’s counsel filed the suit seeking to set aside the arbitral award at the Lagos State High Court on September 1, 2026.

State seeks to overturn freezing order

According to Alimi, the state government filed the Lagos State High Court suit before Gamji subsequently approached the Federal High Court and obtained the ex-parte order freezing the state’s accounts.

The state government maintained that its legal team would continue to pursue the matter before the relevant courts.

It also reaffirmed its position that the arbitration award being relied upon by Gamji remained subject to legal challenge, while its application seeking to vacate the Federal High Court’s freezing order awaits consideration.