Osun State seeks to vacate court order freezing government accounts

Osun State has filed an application at the Federal High Court in Lagos to vacate an order freezing its bank accounts. The state accused Gamji Nigeria Company Limited of concealing material facts to obtain the September 9, 2026, ex-parte order. The application was filed on October 2, 2026.

Commissioner for Information and Public Enlightenment Oluomo Kolapo Alimi said in a Sunday statement that the government is challenging the arbitration award used to seek the enforcement. The state described the award as irregular and argued that the court order does not align with public policy.

The dispute stems from a 2017 contract entered into during the administration of former Governor Rauf Aregbesola. The government of former Governor Gboyega Oyetola inherited the contract, which led to a disagreement over a variation request and an alleged debt of $15,982,638.22.

Osun officials alleged the arbitration process was deliberately mismanaged to favor Gamji Nigeria Company Limited. The state said it was denied a fair hearing and full participation throughout the proceedings.

The government also disputed the timeline of the arbitration. It stated that no arbitral award was made against the state in July 2024, claiming the only award occurred in July 2026. This award is currently being challenged by the state's legal team before the Lagos State High Court.

Legal counsel for the state filed a suit at the Lagos State High Court on September 1, 2026, seeking to set aside the arbitral award. A motion on notice was filed alongside the originating motion to suspend the execution of the award until the substantive suit is determined.