The Osun State Government has taken a stand against an ex parte order that restricts its bank accounts over a $13.9 million arbitration award granted to Gamji Nigeria Company Limited. In response, the state government filed an application before the Federal High Court in Lagos, seeking to set aside the order and protect its rights in the dispute. This move is part of the government's efforts to challenge the basis of the order and the validity of the arbitration award.
According to the Osun State Government, the ex parte order was issued by Justice D.E. Osiagor on an application filed by Gamji through its counsel, Yunus AbdulSalam, SAN. The government, however, disputes the basis of the order, alleging that it was obtained through non-disclosure of material facts. The state government also claims that the arbitration award sought to be enforced is affected by several irregularities.
The dispute between the Osun State Government and Gamji Nigeria Company Limited dates back to a 2017 contract entered into during the administration of former Governor Adegboyega Oyetola. The government had rejected a variation request by Gamji, particularly over its claim that the state government was indebted to the company to the tune of $15,982,638.22. The dispute subsequently proceeded to arbitration.
The Osun State Government alleges that the arbitration process was improperly handled, denying the state a fair hearing and full participation. The government claims that the alleged irregularities in the arbitration proceedings and the resulting award have been submitted before the Lagos State High Court. The state government's counsel filed a suit seeking to set aside the arbitral award at the Lagos State High Court on September 1, 2026.
Before Gamji approached the Federal High Court, the Osun State Government had commenced legal action to vacate the order and subject the arbitration award to judicial review. A motion on notice was also filed alongside the originating motion, seeking to suspend execution of the award pending the determination of the suit. Both applications were served on Gamji and its counsel.
The Osun State Government expressed dismay that Gamji Nigeria Company Limited, despite being aware of the originating motion and motion on notice filed before the Lagos State High Court, approached the Federal High Court to enforce the award. The government maintains that the purported award referenced in the ex parte order of September 9, 2026, does not exist.
The Osun State Government is seeking to protect its rights and challenge the arbitration award, which it claims is flawed. The government remains committed to resolving the dispute in a fair and transparent manner. The case is ongoing, with the Federal High Court yet to rule on the application filed by the Osun State Government.
Key points
- The Osun State Government has challenged an ex parte order restricting its bank accounts over a $13.9 million arbitration award in favour of Gamji Nigeria Company Limited.
- The government alleges that the order was obtained through non-disclosure of material facts and that the arbitration award is affected by several irregularities.
- The dispute between the Osun State Government and Gamji Nigeria Company Limited dates back to a 2017 contract entered into during the administration of former Governor Adegboyega Oyetola.
