The Osun State Government has approached the Federal High Court in Lagos to vacate an ex-parte order that froze its accounts. According to the government, Gamji Nigeria Company Limited obtained the order by concealing material facts from the court. The state government is also challenging the enforcement of an arbitral award related to a 2017 contract dispute with Gamji, which it inherited from the previous administration.
The dispute originated from a 2017 contract between Osun State and Gamji Nigeria Company Limited. The company claimed the state owed it $15,982,638.22 and the matter proceeded to arbitration. However, the Osun government alleged that the arbitration proceedings were conducted in a manner that denied the state a fair hearing and full participation. The government is challenging the arbitral award before the Lagos State High Court, citing irregularities in the arbitration process.
On September 9, the Federal High Court granted an ex-parte order freezing Osun State's accounts based on an application by Gamji Nigeria Company Limited. The state government has now filed an application to set aside this order, arguing that Gamji failed to disclose relevant facts to the court. Specifically, the government claimed that Gamji did not inform the court about the pending proceedings in the Lagos State High Court challenging the arbitral award.
The Osun government stated that it had, since September 1, filed an action before the Lagos State High Court seeking to set aside the arbitral award and had also applied for an order suspending its execution pending the determination of the suit. Despite being served with court processes, Gamji and its legal representatives proceeded to the Federal High Court to enforce the award without disclosing the pending proceedings.
The state government disputed the reference to a July 2024 arbitral award in connection with the September 9 order, insisting that no arbitral award was made against the state in July 2024. According to the government, the only arbitral award against Osun was issued in July 2026, and it is currently being challenged before the Lagos State High Court.
The Osun government emphasized that its latest application before the Federal High Court aims to protect the state's right to due process and ensure judicial review of the disputed award. The government stated that it would continue to pursue all available legal avenues to secure the vacation of the account-freezing order while refraining from commenting further on the substantive issues, as the matter is currently before the courts.
The Commissioner for Information and Public Enlightenment, Kolapo Alimi, issued a statement on Sunday, confirming the government's position. The government is seeking to ensure that its rights are protected and that the court processes are not misused to prejudice the state. The case is ongoing, and the court will determine the merits of the government's application.
Key points
- - The Osun State Government has asked the Federal High Court to vacate an ex-parte order freezing its accounts. - The government alleges that Gamji Nigeria Company Limited concealed material facts from the court in obtaining the order. - The state is challenging the enforcement of an arbitral award related to a 2017 contract dispute with Gamji.
