Osun govt asks court to vacate order freezing state accounts

Osun govt asks court to vacate order freezing state accounts

By Waliu Adetokun, Osogbo

The Osun State Government has approached the Federal High Court in Lagos, seeking to set aside an order freezing the state’s accounts, alleging that the order was obtained by Gamji Nigeria Company Limited through concealment of material facts.

The application, filed on October 2, 2026, is challenging the ex-parte order made by the court on September 9, 2026.

The Commissioner for Information and Public Enlightenment, Oluomo Kolapo Alimi, who disclosed this in a statement on Sunday, said the state government was also challenging the arbitral award which Gamji is seeking to enforce.

Alimi said the state government’s position was that the order was obtained without the Federal High Court being given all the relevant facts surrounding the dispute.

He said, “Just as the court order was a product of deceit and substantial non-disclosure of material facts to the Court, the arbitration award it sought to enforce was also fraught with several irregularities.”

The commissioner added that the September 9 order referred to an alleged arbitral award made in July 2024, which, according to the state government, did not exist.

He explained that the only arbitral award against the state was made in July 2026 and that the award was already being challenged by the state government before the Lagos State High Court.

The dispute, according to the government, dates back to a 2017 contract entered into during the administration of former Governor Gboyega Oyetola.

The state said the dispute arose after the then administration rejected a variation request by Gamji Nigeria Company Limited, with the parties subsequently disagreeing over whether the state was indebted to the company in the sum of $15,982,638.22.

The government alleged that the arbitration proceedings were not properly handled, claiming that the process denied the state fair hearing and full participation.

It said the alleged irregularities in the arbitration proceedings and the final award were already before the Lagos State High Court.

According to Alimi, the state government’s legal team filed the suit challenging the arbitral award on September 1, 2026, before Gamji approached the Federal High Court to enforce the award.

He said the state had also filed a motion seeking to suspend execution of the award pending the determination of the suit and that the documents had been served on Gamji and its counsel.

The commissioner said the company was therefore aware that the award was being challenged before it approached the Federal High Court.

“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,” Alimi said.

He further alleged that Gamji failed to disclose to the Federal High Court that the validity of the award was already being challenged before the Lagos State High Court.

The state government said its application seeking to set aside the September 9 order had been presented before the Federal High Court, adding that it had drawn the court’s attention to the circumstances surrounding the order.

The government, however, said it would not comment further on the merits of the case because the matter was already before the courts.

It assured residents that it was taking all necessary legal steps to vacate the order and protect the interests of the state.

“The Osun State Government wishes to reassure the public that necessary legal action is ongoing to vacate the order and ensure the due right of the State is observed by judicial review of the Arbitration Award,” the statement added.

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