The Osun State Government has asked the Federal High Court in Lagos to vacate an order restricting access to its bank accounts over a $13.9 million arbitration award in favour of Gamji Nigeria Company Limited.
The state, through its Commissioner for Information and Public Enlightenment, Oluomo Kolapo Alimi, said it filed the application on October 2, challenging both the account restriction and the underlying arbitration award.
The government alleged that Gamji failed to disclose material facts when it approached the Federal High Court for the restriction order, including the fact that Osun had already gone to the Lagos State High Court to challenge the arbitral award.
According to Alimi, the state filed a suit to set aside the award on September 1 and also sought to suspend its enforcement pending the determination of the case.
DAILY GAZETTE had reported that Justice Daniel Osiagor of the Federal High Court ordered commercial banks to place a “Post No Debit” restriction on accounts operated by the Osun government to preserve the $13.9 million and N157.5 million awarded to Gamji.
The order followed Gamji’s application to preserve the funds pending determination of its substantive motion. The case has been adjourned until October 22.
The dispute stems from two water infrastructure contracts awarded to Gamji by the Osun State Government in 2017 during the administration of former Governor Adegboyega Oyetola.
Gamji said the projects, financed through an Islamic Development Bank loan facility, were substantially completed before disagreements over extensions of time, price adjustments and increased project costs led to arbitration.
An arbitral panel subsequently awarded Gamji $13.9 million and N157.5 million in reimbursable arbitration fees, with 20 per cent annual interest on any outstanding balance after the compliance deadline.
Osun, however, disputes the award, alleging irregularities in the arbitration process and a denial of fair hearing and full participation.
Alimi said the state would continue to challenge the award and the circumstances surrounding the order restricting its accounts.
