The Osun State Government has filed an application at the Federal High Court in Lagos, seeking to set aside an ex-parte order that restricts access to its bank accounts over a $13.9 million and N157.5 million arbitration award in favour of Gamji Nigeria Company Limited. The state government argues that the order was obtained without full disclosure of important facts surrounding the dispute. The application was filed on October 2, 2026, two days before details of the account restriction became public.
Gamji Nigeria Company Limited, a contractor involved in water infrastructure projects in Osun State, had approached the court seeking to preserve funds belonging to the state government pending enforcement of the arbitral award. The company claimed that the state government failed to comply with the payment deadline, leading to the arbitration award. Justice D.E. Osiagor directed several commercial banks to place a “Post No Debit” restriction on accounts operated by the Osun State Government, covering funds up to $13,924,343.32 and N157.5 million.
The Osun State Government has disputed the circumstances under which the order was obtained, alleging that Gamji failed to disclose material facts to the court. The state government also challenged the description of the arbitration award relied upon in the application. According to the Commissioner for Information and Public Enlightenment, Kolapo Alimi, the ex-parte order referred to an alleged arbitral award made against the state in July 2024, which the government claims does not exist.
The dispute between the state government and Gamji dates back to contracts awarded in 2017 during the administration of former Governor Gboyega Oyetola. The contracts were connected to water infrastructure works in Ilesa West Local Government Area. The projects included the construction of transmission mains, booster pump stations and water reservoirs as part of a wider water supply and sanitation programme.
The contractual disagreement later centred on variations to the original agreements and whether additional sums were payable to the contractor. The government said the disagreement eventually resulted in arbitration, which was allegedly mismanaged and handled to favour Gamji Nigeria Company Limited. The state government had raised concerns about the manner in which the arbitration was conducted.
Gamji, however, maintained a different position in its court filings, claiming that changes to the project designs, variations in the scope of work and other factors increased the cost of executing the contracts. The company claimed that a substantial portion of the work had been completed before the disagreement over payments and other contractual claims intensified. The dispute included claims relating to extensions of time, increases in the cost of materials and labour, as well as adjustments to the contract values.
The Federal High Court has fixed October 22, 2026, for the hearing of the motion on notice. Until then, the account restriction remains subject to the court’s further proceedings. The development could affect the state’s access to funds held across several commercial banks, although the restriction is tied to the amount stated in the court order.
Key points
- The Osun State Government is challenging a court order freezing its bank accounts over a $13.9 million and N157.5 million debt to Gamji Nigeria Company Limited.
- The state government argues that the order was obtained without full disclosure of important facts surrounding the dispute.
- The dispute dates back to contracts awarded in 2017 for water infrastructure works in Ilesa West Local Government Area.
