Osun moves to vacate court order freezing govt accounts - Punch Newspapers

The Osun State Government on Sunday said it has filed an application to the Federal High Court, Lagos, asking the court to set aside the ex parte order that placed restrictions on bank accounts operated by the Osun State Government over a $13.9 million arbitration award in favour of Gamji Nigeria Company Limited. The government also reassured the public that necessary legal action had commenced to vacate the order and ensure the due rights of the state were observed by judicial review of the Arbitration Award. The PUNCH reports that the court ordered commercial banks to place a “Post No Debit” restriction on bank accounts operated by the state government. 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; the arbitration award it sought to enforce was also fraught with several irregularities.”See more Punch stories on Google.Add Punch on Google It said the development prompted the state government’s legal team “to approach the High Court of Lagos State to set aside the award.” The statement further 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.” Fadahunsi donates transformer to Osun community, seeks support for Tinubu NYSC kidnap: Osun NURTW decries insecurity on highways Morning recap: NYSC kidnap: IED threat stalls rescue operation, Madonna varsity expels student, suspends 14, other top stories 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 the company to the tune of $15,982,638. 22, or not. “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 to 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 merit of the case.” Bola Bamigbola

All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.

Stay informed and ahead of the curve! Follow The Punch Newspaper on WhatsApp for real-time updates, breaking news, and exclusive content. Don't miss a headline – join now!

Stay in the know—fast. Get instant alerts, breaking headlines, and exclusive stories with the Punch News App. Download now and never miss a beat.