The Osun State Government has taken steps to vacate a court order that placed restrictions on its bank accounts. The order, issued by the Federal High Court in Lagos, was in favour of Gamji Nigeria Company Limited, which had been awarded $13.9 million in an arbitration case. According to the government, the order was obtained through deceit and substantial non-disclosure of material facts to the court.
The government has filed an application to the Federal High Court, Lagos, asking the court to set aside the ex parte order. The state government also reassured the public that necessary legal action had commenced to vacate the order and ensure the due rights of the state were observed by judicial review of the Arbitration Award. The court had ordered commercial banks to place a “Post No Debit” restriction on bank accounts operated by the state government.
The arbitration award in question relates to a 2017 contract dispute between the Osun State Government and Gamji Nigeria Company Limited. The dispute started under the administration of ex-Governor Adegboyega Oyetola, who denied a variation request by Gamji. The matter proceeded for arbitration, which the state government claims was deliberately mismanaged and handled to favour Gamji.
The Osun State Government has described the ex parte order as a product of deceit and substantial non-disclosure of material facts to the court. The government also claimed that the arbitration award sought to be enforced was fraught with several irregularities. According to the government, the purported award referenced in the ex-parte order does not exist, as there was no arbitral award made against the state government in July 2024.
The state government's legal team had filed a suit to set aside the Arbitral Award at the Lagos State High Court on September 1, 2026, prior to Gamji's application to the Federal High Court. A motion on notice was also filed to suspend the execution of the Award until the suit is heard and determined. Both motions were duly served on Gamji and its Counsel.
Despite being aware of the originating motion and motion on notice filed before the Lagos State High Court, Gamji Nigeria Company Limited approached the Federal High Court to enforce the award. The government claims that Gamji failed to disclose that the validity of the award was being challenged at the Lagos State High Court or that it was served with an application to suspend any action aimed at executing the said Award.
The Osun State Government has presented a motion on notice to set aside the order of September 9, 2026, before the Federal High Court. The government has refrained from making any prejudicial comments on the merit of the case, as it is still sub judice. The state government's efforts to vacate the court order aim to protect its rights and interests.
Key points
- The Osun State Government has filed an application to vacate a court order freezing its accounts over a $13.9 million arbitration award in favour of Gamji Nigeria Company Limited.
- The government claims that the order was obtained through deceit and substantial non-disclosure of material facts to the court.
- The state government's legal team had filed a suit to set aside the Arbitral Award at the Lagos State High Court prior to Gamji's application to the Federal High Court.
