By Mercy Eruaga
Adeleke administration challenges restriction, says material facts were allegedly withheld from court
The Osun State Government has launched a fresh legal challenge over the restriction placed on some of its bank accounts in connection with a $13.9 million arbitration award involving Gamji Nigeria Company Limited, a contractor linked to water infrastructure projects in Ilesa West Local Government Area.
Rather than allow the matter to go unchallenged, the state government has returned to court, asking the Federal High Court in Lagos to vacate the order restricting transactions on its accounts.
The government, through the Commissioner for Information and Public Enlightenment, Kolapo Alimi, said Osun filed its application on October 2, 2026, challenging the order and raising concerns about the circumstances under which it was obtained.
According to the state, the order was allegedly secured through the concealment of material facts, while the arbitration award being relied upon by Gamji is itself being challenged before the Lagos State High Court.
The dispute centres on an arbitration award reportedly directing the Osun State Government to pay Gamji Nigeria Company Limited $13.924 million, in addition to other sums connected with the arbitration.
Gamji subsequently approached the Federal High Court seeking measures to preserve funds belonging to the state pending enforcement of the award.
The court consequently issued a “Post No Debit” order affecting accounts operated by the Osun State Government in several commercial banks.
But the Adeleke administration is contesting the development and wants the restriction lifted.
The government's position is that the circumstances surrounding the arbitration award and the subsequent application before the Federal High Court deserve proper judicial examination.
At the heart of the controversy are contractual disagreements arising from water infrastructure projects undertaken in Ilesa West.
The dispute reportedly involved issues surrounding the execution of the projects, including contractual obligations and financial claims.
After the matter proceeded to arbitration, an award was eventually issued in favour of Gamji.
The Osun Government, however, has maintained that the award is not beyond challenge and has taken legal steps to contest it.
For the Osun Government, the latest application represents an attempt to ensure that the state's position is fully heard before any enforcement action affects its finances.
The administration is asking the court to reconsider the restriction and allow the legal dispute over the arbitration award to be properly determined.
The case therefore goes beyond a dispute between a government and a contractor. At stake is whether a multimillion-dollar arbitration award can be enforced against the state while the government continues to challenge the circumstances surrounding the award.
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