Osun asks court to set aside order restricting state accounts

The Osun State Government says it has asked the Federal High Court in Lagos to set aside an order restricting its bank accounts over an arbitration award in favour of Gamji Nigeria Company Limited.

Information Commissioner Kolapo Alimi said the application was filed on October 2. In a statement issued on Sunday, the government alleged that Gamji obtained the order without disclosing that the state was already challenging the award in another court.

The dispute concerns a $13.9 million award arising from water infrastructure contracts. Vanguard also reported N157.5 million as part of the award. The interim order prevents debits from the affected accounts while the court considers the company’s application; NaijaTrend reported the order here.

Justice D.E. Osiagor issued the order in suit FHC/L/CS/1233/2026. The state’s request to have it set aside is an application, not a ruling lifting the restrictions.

Alimi said the state’s lawyers had filed a separate challenge to the arbitration award at the Lagos State High Court on September 1, before the Federal High Court order of September 9. He said they also sought to suspend enforcement until that challenge was heard.

The government alleged that Gamji and its lawyers had been served with those applications but did not disclose them when seeking the Federal High Court order. It also alleged that the arbitration process denied the state a fair hearing. Those are the state’s claims in the dispute, not findings by the court.

The state further disputed a reference to a July 2024 award in the September 9 order. Alimi said the only award against the state was made in July 2026 and was the subject of its challenge at the Lagos State High Court.

The contractual disagreement dates back to 2017. According to the state’s account, it involved a request by Gamji to vary the contract and a dispute over whether the government owed the company $15,982,638.22.

Alimi said the government’s legal team would continue pursuing the applications before the relevant courts.

Sources: Punch, Vanguard