Osun Challenges Court Order Restricting State Accounts Over $13.9m Arbitration Award
Osun State has asked the Federal High Court in Lagos to set aside an order restricting withdrawals from its bank accounts over a $13.9 million arbitration award in favour of Gamji Nigeria Company Limited, arguing that the underlying award is already being challenged before the Lagos State High Court.
A Dispute Over Enforcement
Osun State Government has asked the Federal High Court in Lagos to set aside an order restricting withdrawals from its bank accounts over a $13.9 million arbitration award in favour of Gamji Nigeria Company Limited.
The interim order, made by Justice D.E. Osiagor, directed financial institutions holding Osun government accounts to place a “Post No Debit” restriction on the accounts to preserve funds of $13,924,343.32 and ₦157.5 million pending the determination of the enforcement proceedings. The order followed an application by Gamji after the company said the deadline for compliance with the arbitral award had expired without payment.
Why Osun Is Challenging the Order
The state government says the Federal High Court was not given the full picture when the restriction was obtained.
According to a statement by Osun’s Commissioner for Information, Kolapo Alimi, the state had already approached the Lagos State High Court on September 1 to challenge the underlying arbitral award and had also filed an application seeking to suspend its enforcement.
Osun therefore argues that Gamji failed to disclose the pending challenge when it approached the Federal High Court. The state is asking the court to vacate the September 9 ex parte order and has characterised the circumstances surrounding its procurement as involving material non-disclosure. Those assertions remain the state government’s position and have not been established as findings against Gamji.
The Arbitration Dispute Remains Alive
At the centre of the dispute is an arbitration arising from a contract for water infrastructure projects in Osun. Gamji says an arbitral panel issued a final award on July 24, 2026 directing the state to pay about $13.9 million and ₦157.5 million in reimbursable arbitration fees, with 20 per cent annual interest on any outstanding balance after the compliance deadline.
Osun disputes the validity of the award and alleges irregularities in the arbitration process, including what it describes as a denial of fair hearing and full participation. It is asking the Lagos State High Court to set the award aside.
The immediate legal question is therefore not simply whether Osun owes the sums claimed. It is also whether the arbitral award can presently be enforced while its validity is being challenged before another court. Until the courts determine the competing applications, the allegations by either side should not be treated as established findings.
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