Mr. Obanikoro polled 343 votes to emerge runners up in the ill-tempered primaries in which Jimi Agbaje won with 432 votes.
The former Minister of State said that the “electoral fraud” was condemnable and he would fight the result of the polls.
Trouble started at the venue of the primaries after Seidu Kumo, a former Senator and chairman of the electoral committee, announced 863 as the total votes cast.
Before delegates began voting, the committee had announced 806 as the number of accredited delegates.
“I still can’t comprehend how accredited delegates of 806 rose to 867,” Mr. Obanikoro told journalists inside his campaign office in Lagos, midnight Tuesday.
“With the benefit of hindsight now, you could tell it was a predetermined situation.”
Earlier, after the result was announced at the venue of the primaries, Mr. Agbaje expressed his satisfaction and called on other aspirants for their support.
Violence had erupted outside the venue of the primaries hours before voting began.
Bode George, a party chieftain and key supporter of Mr. Agbaje, blamed Mr. Obanikoro for using his thugs to unleash mayhem and intimidate delegates.
But Mr. Obanikoro denied the claim, insisting that Mr. George’s loyalists were to blame.
“Bode George brought some people to come and create that situation but police arrested it, but it was definitely Bode George,” Mr. Obanikoro said.
“Did you see me there the time that the crisis was on? It was his man, Agbalaya and others.
“As far as we are concerned, there is no election result and the election should be cancelled.
“The process is completely tainted and going forward with that will lead to an outcome that will not be beneficial to the party.”
Earlier, as counting of votes was going on, one of the aspirants, Babatunde Gbadamosi, kept shouting “fraud, fraud, shameless fraud”.
There was a fierce war of words inside the venue of the primaries. Earlier, it was announced that a total of 806 delegates would vote. But at the end of sorting of votes, the figure rose to 863.
Mr. Gbadamosi said that the election was “concluded” before it even started.
“From start to finish, there was intimidation, tear gassing of delegates.”
The head of the election committee however said: “We have to count the votes first, then after we discuss this issue.
“Election has taken place. So counting must take place. You can’t stop the counting. We can sort it out later.”