OSOGBO - The Osun State Government has blamed the administration of former Governor Gboyega Oyetola for the contract dispute with Gamji Nigeria Company Limited that has now resulted in a Federal High Court order restricting transactions on some state government bank accounts.

The state government, in a statement issued on Sunday by the Commissioner for Information and Public Enlightenment, Oluomo Kolapo Alimi, said the dispute originated from a 2017 contract during the Oyetola administration, which it alleged rejected a variation request submitted by Gamji.

The government said it has filed an application before the Federal High Court in Lagos seeking to set aside the ex-parte order made on September 9, 2026, arguing that the order was allegedly obtained through concealment of material facts and non-disclosure by Gamji.

According to the government, the contract dispute centred on whether the state was indebted to Gamji to the tune of $15,982,638.22, following disagreements over the terms and variation of the contract.

The state further alleged that the subsequent arbitration process was characterised by irregularities and that it was denied fair hearing and full participation in the proceedings.

Osun said the arbitration award being relied upon by Gamji is already being challenged before the Lagos State High Court, where the state filed a suit on September 1, 2026, seeking to set aside the award.

The government claimed that Gamji was served with the relevant court processes, including an application seeking to suspend execution of the award pending determination of the case, but subsequently approached the Federal High Court to enforce the same award without disclosing the pending proceedings.

The state also disputed the reference in the September 9 Federal High Court order to an arbitral award allegedly made in July 2024. It said no such award was made against the state in July 2024, adding that the only arbitral award it recognises was issued in July 2026 and is currently being challenged.

According to the government, the application to set aside the Federal High Court order was filed on October 2, 2026, while the state’s legal team continues to pursue its challenge to the arbitral award before the Lagos State High Court.

The government described the freezing of the state accounts as a serious matter but said it would refrain from making comments capable of prejudicing the proceedings because the matter remains sub judice.

It assured residents that all necessary legal steps are being taken to vacate the Federal High Court order and protect the financial and legal interests of the state.