Osun Challenges freezing of state accounts, seeks vacation of court order
By John Dike, Osogbo
Osun State Government has approached the Federal High Court in Lagos seeking the setting aside of an ex-parte order freezing the state’s accounts, describing the order as having been obtained through alleged deceit and non-disclosure of material facts.
The state government, in an application filed on October 2, 2026, challenged the order made on September 9, 2026, in favour of Gamji Nigeria Company Limited.
The government also questioned the validity of the arbitration process and award upon which the enforcement action was based, insisting that the underlying contractual dispute dates back to the administration of former Governor Gboyega Oyetola.
In a statement issued on Sunday by the Commissioner for Information and Public Enlightenment, Oluomo Kolapo Alimi, the government said the Federal High Court order was not only allegedly procured through concealment of material facts but also failed to meet public policy considerations.
According to the statement, the arbitration award relied upon by Gamji Nigeria Limited to obtain the ex-parte order was itself being challenged by the Osun State Government before the Lagos State High Court.
The government said its legal team had instituted proceedings at the Lagos State High Court since September 1, 2026, seeking to set aside the arbitral award.
It further disclosed that alongside the originating motion challenging the award, its lawyers also filed a motion on notice seeking to suspend enforcement of the award pending the determination of the substantive case.
The state government maintained that both processes were duly served on Gamji Nigeria Company Limited and its legal representatives, meaning that the company was fully aware that the arbitral award was under judicial challenge.
It therefore accused the company of subsequently approaching the Federal High Court in Lagos to enforce the same award without disclosing the pending proceedings before the Lagos State High Court.
The government said such non-disclosure amounted to a serious omission of material facts capable of affecting the decision of the court.
According to Alimi, another issue raised by the state concerns the alleged reference in the September 9 Federal High Court order to an arbitral award purportedly made against the state in July 2024.
The government said there was no such arbitral award made against Osun State in July 2024.
It explained that the only arbitral award against the state was made in July 2026 and that the said award is currently being challenged before the Lagos State High Court.
The dispute itself, the government explained, originated from a 2017 contract entered into during the administration of former Governor Oyetola.
The disagreement reportedly followed a variation request by Gamji Nigeria Company Limited, with the parties disputing whether the Osun State Government was indebted to the company to the tune of $15,982,638.22.
The government said the matter subsequently proceeded to arbitration but alleged that the proceedings were conducted in a manner that denied the state fair hearing and full participation.
It further alleged that the arbitration process was “deliberately mismanaged” in a manner favourable to Gamji Nigeria Limited.
The state government stressed that the alleged irregularities surrounding both the arbitration proceedings and the final award have now been placed before the Lagos State High Court for determination.
The government expressed concern that despite being served with the processes challenging the award, Gamji Nigeria Limited allegedly proceeded to seek enforcement of the award before another court.
It said the company failed to disclose to the Federal High Court that the validity of the award was already being contested before the Lagos State High Court.
Osun State said it has now formally brought the alleged non-disclosure and other circumstances surrounding the procurement of the ex-parte order 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 is currently sub judice.
It assured residents and members of the public that it was taking all necessary legal steps to secure the vacation of the September 9 order and protect the interests of the state.
The government also reaffirmed its commitment to ensuring that the disputed arbitration award is subjected to appropriate judicial scrutiny before any enforcement action is allowed to proceed.
