The Osun State Government has filed an application before the Federal High Court in Lagos seeking to set aside an interim order restricting transactions on its bank accounts over a $13.9 million arbitration award in favour of Gamji Nigeria Company Limited.

The development follows an interim order issued by Justice D.E. Osiagor directing commercial banks to place a “Post No Debit” restriction on accounts operated by the state government. The order seeks to preserve $13,924,343.32 and ₦157.5 million pending the hearing and determination of Gamji’s motion on notice.

In a statement issued on Sunday by the Osun Commissioner for Information and Public Enlightenment, Kolapo Alimi, the government said it had commenced legal steps to challenge both the court order and the arbitral award. The state alleged that material facts were not disclosed when Gamji obtained the ex parte order.

According to the government, its legal team had already approached the Lagos State High Court on September 1, 2026, seeking to set aside the arbitral award and suspend its enforcement. It further alleged that Gamji was aware of the pending challenge before approaching the Federal High Court.

The state government also disputed aspects of the history of the arbitration, saying the process was affected by irregularities and that the state was denied a fair opportunity to fully participate. These remain allegations by the Osun Government and are yet to be judicially determined.

Gamji, on its part, had approached the Federal High Court after an arbitral panel issued a July 24, 2026 award directing Osun to pay $13,924,343.32 and ₦157.5 million in reimbursable arbitration fees. The company had told the court that the compliance deadline expired on August 24 without payment.

The Federal High Court has adjourned the matter until October 22, 2026, for hearing of the motion on notice. Until then, the dispute over the enforceability of the arbitration award and the restriction on the state’s accounts remains before the courts.