Osun Challenges Court Order On State Accounts, Questions Validity Of Gamji Arbitration Award

-State alleges non-disclosure of pending suit

-says contract dispute dates back to 2017

The Osun State Government has challenged a Federal High Court order issued on September 9, 2026, in connection with its dispute with Gamji Nigeria Company Limited, alleging that the order was obtained without disclosure of material facts.

The government said it had filed an application seeking to set aside the order, which it described as improperly procured, insisting that the company failed to disclose that the arbitration award it sought to enforce was already being challenged before another court.

The Commissioner for Information and Public Enlightenment, Oluomo Kolapo Alimi, announced this in a statement on Sunday, October 4, stating that the application was filed before the Federal High Court in Lagos on October 2.

The development comes amid a long-running contractual disagreement between the state government and Gamji Nigeria Company Limited over an alleged debt of $15.98 million arising from a contract dispute that began in 2017.

According to the government, the dispute originated during the administration of former Governor Gboyega Oyetola, following a disagreement over the company’s request for a contract variation and the question of whether the state was indebted to it.

The state government also questioned the circumstances surrounding the arbitration process and the resulting award, alleging that the proceedings did not provide it with a fair opportunity to participate fully.

“The arbitration award it sought to enforce was also fraught with several irregularities which had prompted the State Government’s legal team to approach the High Court of Lagos State to set aside the Award,” the statement said.

The government further maintained that no arbitral award was issued against it in July 2024, as allegedly referenced in the proceedings leading to the September 9 order. It said the award against the state was issued in July 2026 and was already the subject of a legal challenge.

Alimi disclosed that the state government’s lawyers had filed an application at the Lagos State High Court on September 1, 2026, seeking to nullify the award. A separate application was also filed to suspend its execution pending the determination of the suit.

The statement alleged that Gamji and its legal representatives were served with the court processes but subsequently approached the Federal High Court without disclosing the pending challenge to the award.

“The company failed to disclose that the validity of the award was being challenged at the Lagos State High Court or that it had been served with an application to suspend any action aimed at executing the award,” the government stated.

The state government said it had now formally asked the Federal High Court to vacate the September 9 order, adding that its legal team had drawn the court’s attention to what it described as material non-disclosure in the company’s application.

While declining to make further comments on the substance of the dispute because it remained before the courts, the government assured the public that it would continue to pursue legal measures to protect its interests.

It maintained that the dispute should be resolved through the judicial process, expressing confidence that the courts would consider the applications before them in determining the validity of the arbitration award and the order sought to be enforced.