COURT FIXES JULY 16 FOR JUDGMENT IN MACOBARB’S N5.74BN BREACH OF CONTRACT SUIT AGAINST NLNG
Read Time:2 Minute, 17 Second
By Aishat Momoh. O.
A High Court sitting in Port Harcourt has fixed July 16, 2025, for judgment in the N5.74 billion breach of contract suit filed by indigenous construction firm, Macobarb International Limited, against the Nigeria Liquefied Natural Gas Limited (NLNG).
The decision follows the adoption and adumbration of final written addresses by both parties on Tuesday, June 24, 2025, before Justice Chinwendu Nwogu in suit number PHC/2013/CS/2022.
Macobarb is accusing NLNG of unlawfully terminating a contract and is seeking compensation amounting to ₦5.74 billion for costs allegedly incurred due to the breach. The company insists that the contract remains active and that associated costs are still accumulating.
Representing Macobarb, lead counsel Benefit Vilokpo argued that the termination letter dated November 27, 2015, issued by one Emeka Ohiri, is invalid, null, and void, as Ohiri was not a party to the contract. Vilokpo maintained that the rightful contract holder, Dweller Francis, never issued any such letter.
He further pointed out that the contract contained provisions for “standby payments” and “standdown time,” which the company believes it is entitled to, citing unchallenged evidence presented by a forensic accountant. Vilokpo also referenced a contract “close-out meeting” held on February 19, 2016, to support his claim that the contract was never formally concluded.
Macobarb urged the court to consider NLNG’s continued engagement, including receipt of delivered materials and a 20-foot container, as proof that the contract was still ongoing.
On the other hand, NLNG’s lead counsel, Professor Bayo Aderelegbe, asked the court to dismiss the suit, insisting the contract was properly terminated by a legitimate representative. He argued that the claims exceed the lump sum agreed upon in the contract and lacked legal merit.
A key contention from NLNG was that Macobarb failed to provide a Performance Bond within 14 days as stipulated, which it said justified the termination. Macobarb countered that the contract did not clarify who was responsible for submitting the bond and that it took NLNG 16 months to raise the issue—long after project execution had begun.
Macobarb also reminded the court that earlier attempts at resolving the dispute, including appeals to the Nigerian Senate, were unsuccessful.
Justice Nwogu will now rule on whether the termination was legally valid, whether the correct party issued it, and whether NLNG owes Macobarb any part of the N5.74 billion claim. A notable moment in the proceedings came when the judge cautioned Macobarb’s counsel against introducing new legal authorities not included in the original written address.
The judgment, expected on July 16, could have significant implications for government contracts and dispute resolution in Nigeria’s oil and gas sector.
Happy
0 %
Sad
0 %
Excited
0 %
Sleepy
0 %
Angry
0 %
Surprise
0 %
0
0