The Osun State Government has taken a significant step in a legal dispute with Gamji Nigeria Company Limited, approaching the Federal High Court in Lagos to challenge an ex-parte order that froze some of its accounts. According to the government, this order was obtained through deceit and substantial non-disclosure of material facts by Gamji. The dispute originated from a 2017 contract made during the administration of former Governor Gboyega Oyetola.
The government filed its application on October 2, 2026, arguing that the order, made on September 9, 2026, was procured unlawfully. The state government also disputes the arbitration award that led to the account-freezing order. In a statement by Commissioner for Information and Public Enlightenment, Oluomo Kolapo Alimi, the government stated that its legal team had already approached the Lagos State High Court to challenge the validity of the arbitral award.
Before Gamji approached the Federal High Court to enforce the arbitral award, the Osun State Government had filed a suit challenging the award on September 1, 2026. Alongside this suit, the government filed a motion seeking to suspend the execution of the award pending the determination of the case. However, Gamji Nigeria Company Limited was served with court processes but failed to disclose that the award was being challenged.
The government further disputes the reference to a July 2024 arbitral award mentioned in the September 9 order, stating that no such award existed against the state at that time. According to the government, the only arbitral award against the state was issued in July 2026, and it was already being challenged in court. The underlying dispute involves a claim that the state government owes Gamji Nigeria Company Limited $15,982,638.22.
The dispute arose from a variation request by Gamji and issues related to a 2017 contract. The subsequent arbitration process was marred by irregularities, alleged denial of fair hearing, and full participation by the state. These irregularities are now before the Lagos State High Court as the government seeks to set aside the arbitral award.
The government asserts that Gamji's decision to approach the Federal High Court while the award was being challenged constituted a material omission that should have been disclosed to the court. The state government has formally presented its motion to set aside the September 9 order and brought the alleged non-disclosure to the court's attention.
The Osun State Government has assured residents that it is taking necessary legal steps to vacate the order and protect the state's interests through judicial review of the arbitration award. The government will refrain from making further comments on the dispute's merits as the matter is sub judice.
Key points
- The Osun State Government is challenging a court order freezing its accounts, citing concealment of material facts by Gamji Nigeria Company Limited.
- The dispute originated from a 2017 contract and involves a claim of $15,982,638.22 against the state government.
- The government is seeking a judicial review of the arbitration award that led to the account-freezing order.
