The Osun State Government has asked the Federal High Court in Lagos to vacate an order restricting its bank accounts over a $13.9 million arbitration award in favour of Gamji Nigeria Company Limited.
In an application filed on October 2, 2026, the state alleged that Gamji obtained the September 9 order without disclosing that Osun had already commenced proceedings at the Lagos State High Court to challenge the validity of the arbitral award.
According to the government, it filed the Lagos suit on September 1, seeking to set aside the award and also applied for an order suspending its enforcement pending determination of the case.
It said Gamji and its lawyers were served with the court processes before the company approached the Federal High Court.
The development follows an interim order by Justice D.E. Osiagor directing commercial banks to place a “Post No Debit” restriction on Osun government accounts to preserve funds for enforcement of the award.
The order covers $13,924,343.32 and N157.5 million.
Gamji had told the Federal High Court that the arbitration arose from water infrastructure contracts awarded by the Osun government in 2017.
The company said its claims relating to extensions of time, price adjustments and increased costs of materials and labour were rejected by the state, leading to failed mediation efforts and subsequent arbitration.
Gamji then issued an arbitration notice on April 3, 2025, while the state accepted the process and nominated its arbitrator.
Preliminary proceedings were held in Lagos on May 15, 2025, before the arbitral panel issued its final award on July 24, 2026.
Gamji said the award required Osun to pay $13,924,343.32 and N157.5 million in reimbursable arbitration fees, with 20 per cent annual interest applicable to any outstanding amount after the stipulated compliance period.
It said the August 24 deadline expired without payment, prompting the company to seek preservation of the state’s funds.
However, the Osun government disputed aspects of the proceedings and the circumstances surrounding enforcement of the award.
In a statement issued by the Commissioner for Information and Public Enlightenment, Kolapo Alimi, the government alleged that Gamji failed to inform the Federal High Court that the award was already being challenged before the Lagos State High Court.
Osun further alleged that the arbitration process was conducted in a manner that denied the state fair hearing and full participation.
It said those alleged irregularities form part of the grounds of its challenge to the award.
The state also disputed a reference to a July 2024 arbitral award in connection with the September 9 order, insisting that no such award was made against it in July 2024.
It maintained that the relevant award was issued in July 2026 and is the one currently being challenged before the Lagos State High Court.
The government said the contractual dispute dates back to 2017, during the administration of former Governor Gboyega Oyetola, when it rejected Gamji’s request for a variation of the contract.
The company had subsequently claimed that the state was indebted to it to the tune of $15,982,638.22.
Osun is now asking the Federal High Court to set aside the September 9 ex-parte order, arguing that the alleged non-disclosure of the pending Lagos proceedings amounted to withholding material information relevant to the application.
The Federal High Court has adjourned the substantive matter until October 22, 2026, for hearing of the motion on notice.
The state government said it would pursue all available legal avenues to protect its interests and challenge the enforcement of the disputed award, while refraining from making further comments on the substantive issues because they are before the courts.
