DIPLOMAN TIMES

The Osun State Government has applied to the Federal High Court in Lagos to set aside an ex-parte order freezing state accounts, arguing that the order was obtained through alleged non-disclosure of material facts and that the underlying arbitration award is being challenged.

The Osun State Government has filed an application before the Federal High Court in Lagos seeking to set aside an ex-parte order made on September 9, 2026, relating to the enforcement of an arbitration award and the freezing of state accounts. The application was filed on October 2, according to the state government.

The government contends that the order was procured through what it describes as deceit and concealment of material facts and argues that the order does not accord with public policy. It also disputes the validity and circumstances surrounding the arbitration award referenced in the proceedings. The state says its legal team has separately approached the Lagos State High Court to challenge the award.

The dispute traces back to a 2017 contract under the administration of former Governor Rauf Aregbesola's successor, Oyetola, when a variation request by Gamji Nigeria Company Limited was rejected. The state government said the dispute included a disagreement over whether it owed Gamji approximately US$15.98 million. The matter subsequently proceeded to arbitration, which the present administration says was mishandled and conducted without adequate participation by the state.

The government further stated that the arbitration award currently being challenged was issued in July 2026, while disputing a reference to an alleged July 2024 award. According to the state, its legal counsel filed proceedings before the Lagos State High Court on September 1, 2026, including an application seeking to suspend execution of the award pending determination of the challenge. The government says Gamji and its counsel were served with those proceedings.

The state contends that Gamji nevertheless approached the Federal High Court without disclosing that the award was already being challenged before the Lagos State High Court. The state has now presented its application to set aside the September 9 order and said it would allow the judicial process to determine the underlying dispute. Because the matter remains sub judice, the government said it would refrain from prejudicing the merits of the case while pursuing the legal remedies available to it.