Osun asks court to lift order restricting state accounts

The Osun State Government has asked the Federal High Court in Lagos to set aside an interim order restricting transactions on accounts operated by the state over a disputed $13.9 million arbitration award in favour of Gamji Nigeria Company Limited. The restriction, described as a “Post No Debit” order, was issued by Justice D.E. Osiagor after Gamji applied for enforcement in a suit marked FHC/L/CS/1233/2026.

Commercial banks were directed to prevent withdrawals from the affected accounts. In a statement signed by the Commissioner for Information and Public Enlightenment, Kolapo Alimi, the state said it had filed a motion on notice seeking to cancel the order of September 9. It also said its lawyers had already approached the Lagos State High Court to challenge the underlying arbitration award.

The government alleged that Gamji’s application to the Federal High Court did not disclose that the award was already being contested. According to the statement, the state filed its Lagos suit on September 1, before the company sought the ex parte order, and served both the originating motion and an application asking the court to suspend enforcement. Osun also disputed the description and timing of the award referenced in the Federal High Court proceedings.

It said no award had been made against the state in July 2024, while the only award it recognised was issued in July 2026 and is currently under challenge. The dispute began with a 2017 contract disagreement during the administration of former governor Adegboyega Oyetola. The state said a request by Gamji to vary the contract was rejected and that the arbitration process was mishandled, denying it a fair hearing.

The government said the matter remained sub judice and that it would avoid prejudicial comments on the merits while pursuing the applications before the courts.