The Osun State Government has asked the Federal High Court in Lagos to set aside an order restricting its bank accounts over a $13.9m arbitration award in favour of Gamji Nigeria Company Limited.
The state said it filed the application on October 2, challenging the ex-parte order and the enforcement of the award arising from a dispute over water infrastructure projects in Ilesa West Local Government Area.
The Commissioner for Information and Public Enlightenment, Kolapo Alimi, said the government’s legal team was already challenging the arbitral award before the Lagos State High Court when Gamji approached the Federal High Court for the preservation order.
According to Alimi, the state contends that the order was obtained through “deceit and substantial non-disclosure of material facts” and that the arbitration process was characterised by irregularities.
The government also disputed the reference to a July 2024 arbitral award in the Federal High Court order, saying no such award was made against the state at the time.
“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,” the commissioner said.
The state said it had approached the Lagos State High Court on September 1, 2026, to set aside the award and had also filed a motion seeking to suspend its execution pending the determination of the case.
It alleged that Gamji and its lawyers were served with the processes and were therefore aware that the award was being challenged before approaching 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,” the statement said.
The dispute dates back to contracts awarded by the administration of former Governor Adegboyega Oyetola in 2017 for water infrastructure projects in Ilesa West.
Gamji subsequently commenced arbitration after disagreements with the state over the projects, including claims relating to contract variations, extensions, price adjustments and increased costs.
The arbitral panel issued its final award on July 24, 2026, directing the state to pay Gamji about $13.9m and N157.5m in reimbursable arbitration fees.
Following an application by Gamji, Justice Daniel Osiagor of the Federal High Court in Lagos ordered banks to place a “Post No Debit” restriction on Osun government accounts to preserve funds towards enforcement of the award.
The order covers $13,924,343.32 and N157.5m and will remain in place pending the hearing and determination of Gamji’s motion on notice.
The court has adjourned the matter until October 22, 2026.
The state government maintained that the arbitration award should not be enforced while its challenge to the award remains pending before the Lagos State High Court.
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