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$13.9m Arbitration Award: Osun Asks Court To Set Aside Order On Govt Accounts

by Present Nigeria
October 5, 2026
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Osun State Government says it has filed application to Federal High Court, Lagos, asking court to set aside ex parte order that placed restrictions on bank accounts operated by government over $13.9 million arbitration award in favour of Gamji Nigeria Company Limited.

Government also reassured public that necessary legal action had commenced to vacate order and ensure due rights of state were observed by judicial review of arbitration award.

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Justice D.E. Osiagor issued the interim order following an application filed by Gamji through its counsel, Yunus AbdulSalam (SAN), in a suit marked FHC/L/CS/1233/2026.

But the state government, in a statement signed by the Commissioner for Information and Public Enlightenment, Kolapo Alimi, in reaction to the development, declared that the order “was a product of deceit and substantial non-disclosure of material facts to the court,” adding that the arbitration award it sought to enforce was also fraught with several irregularities.

It said the development prompted the government’s legal team to approach the High Court of Lagos State to set aside the award.

The statement read, “In fact, it was reported that the purported award which the ex parte order of 9th September, 2026, referenced does not exist as there was no arbitral award made against the state government in July 2024.

“The only arbitral award against the state government was in July 2026, and the said award is presently being challenged before the Lagos State High Court by the state government’s legal team.”

Going through the history of the case, the government noted that the 2017 contract dispute started under the administration of ex-Governor Adegboyega Oyetola,

It further said the then administration denied a variation request by Gamji, particularly as it relates to whether the Osun State Government was indebted to Gamji Nigeria Company to the tune of $15,982,638.22 or not.Africans & Diaspora

“The matter proceeded for arbitration, which was deliberately mismanaged and handled to favour Gamji Nig. Co. Ltd., while denying the state government a fair hearing and full participation in the arbitration process as mandated by best practice in the arbitration process.

“The irregularities that characterised the arbitration proceedings and the final arbitral award are matters which have been submitted by the state government to the High Court sitting in Lagos State.

“The counsel for the state government had filed the suit to set aside the arbitral award at the Lagos State High Court since the 1st day of September, 2026 – prior to the time when Gamji Nig. Co. Ltd. surreptitiously approached the Federal High Court to deceitfully procure an ex parte order.

“Alongside the originating motion used to commence the suit in Lagos State, a motion on notice was equally filed to suspend the execution of the award until the suit is heard and determined.

“Both the originating motion and the motion on notice were duly served on Gamji and its counsel; as such, they were fully aware that the award was being challenged by the state government.

“To the greatest chagrin of the Osun State Government and its legal team, Gamji Nig. Co. Ltd., despite being in receipt of the originating motion and motion on notice filed before the Lagos State High Court to suspend execution of the award, furtively approached the Federal High Court sitting in Lagos State to enforce the award – the same award that was being challenged by the state government’s legal team before a court of competent jurisdiction,” the statement read.

The government further disclosed that when the company approached the Federal High Court, it 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 until the suit challenging the award was heard and determined.

It added that “Motion on notice to set aside the order of September 9 has been duly presented before the court, and the deceptive ploy of Gamji Nig. Co. Ltd. has been relayed to the Federal High Court.

“Since the matter is still sub judice, the state government refrains from making any prejudicial comments on the merits of the case.”

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PRESENT, a credible online newspaper from the cell of Red Carpet Communications Limited, is published by an experienced and profoundly resourceful journalist, Yemi Olowolabi.
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