A Rivers State High Court has fixed July 16, 2025, to decide on claims by an Indigenous contractor, Macobarb International Limited, that the NLNG owes it N5.74 billion.
Justice Chinwendu Nwogu fixed the date yesterday after counsels from the two parties adopted and adumbrated their final written addresses.
Macobarb had sued NLNG, claiming that it breached the terms of the contract and that this breach led to various costs amounting to N5.74bn, saying the contract was deemed to still be running and that the cost is rising.
Adopting their address, the lead counsel to Macobarb, Benefit Vilokpo, said, “Claimants have shown by their pleadings and documentary evidence that NLNG breached its terms of contract, and that Macobarb has demonstrated that the purported letter of termination dated 27th November, 2015, is unlawful, null, and void.”
Counsel also said the contract agreement made several provisions for ‘Standby Payments’ and that Claimants have also shown that they are entitled to Standby Payments.
The claimants lead counsel submitted in his adopted final address what he considered issues for determination, thus: “Whether the Claimants have proved their case as required by law to be entitled to the reliefs sought in this case (a. Whether the purported termination letter dated 27th November 2015 was valid in view of the provisions of the contract Agreement).”
The Claimants built their claim on the ground that the person that terminated the contract (Emeka Ohiri) was not known to the contract. Rather, it is the Contract Holder, Dweller Francis, that was known to the contract and that the said Francis never served Macobarb any termination letter.
The claimant counsel also said and pointed to the sections in their final address that the contract provided for standdown time.
Another prong on which the claimant wanted the judge to consider an opinion is whether the Defendant (NLNG) fulfilled the terms and conditions of the Close-out Meeting.
The Claimants final address noted that to demonstrate that the Contract is still in existence, the Defendant, NLNG, called for a meeting on the February 19, 2016 termed “Project close-out meeting”. The contract close-out meeting with signatures of all the attendees (Exhibit YJ 5) showed where it was stated that to close out the contract, NLNG will have to establish what the costs for the materials delivered to NLNG were, as well as the cost for demobilising and to prepare the payment Certificates for all items of the contract executed by the contractor”.
Macobarb asked the court to view it as meaning that the Contract has yet to be closed out and to note that the Defendant (NLNG) admitted receipt of materials, including a 20-ft container, from the Claimants.
NLNG key positions:
The NLNG lead counsel, Prof Bayo Aderelegbe, on the other hand, wants the Court to determine whether the second claimant was a party to the contract and can sue in respect of the contract. Macobarb countered this in their address that this contention by the NLNF had earlier been dismissed by the same court and judge when it was raised during preliminary objection and that in fact, the judge had awarded a fine of N200,000 against the NLNG.
The NLNG counsel also wants the Court to determine whether the Defendant (NLNG) breached the contract as alleged by the Claimants; whether the Defendant wrongfully terminated the Contract; and whether the Claimants were entitled to the N5.74Bn.
During adoption and adumbration of the final addresses on June 24, 2025, the defence lead counsel asked the court to dismiss the claim by Macobarb on the ground that the termination of contract was legitimate and was done by the rightful party. Adarelegbe said the contract provided lumpsum amount and that the claim by Macobarb was outside the amount so provided and that it did not have any basis.
The Claimant’s counsel however countered in his address to the court saying that the Defendant did not challenge the amount submitted by the Claimants’ principal witness, the forensic accountant, and quoted Supreme Court’s position on such matter.
The Claimants’ counsel also said the Defendant did not plead any alternative figure in their statement of defence as being a more realistic or reasonable figure.
Another crucial matter both parties addressed is the issue of ‘Performance Bond’ mentioned in the contract. The NLNG submitted that the Claimant (contractor) failed to submit it within 14 days and that this was the basis for termination of the contract.
The Claimants (Macobarb) counsel countered that the contract did not state who was to submit the Performance Bond between the contractor and the contract owner. Macobarb thus asked the court to note that both parties failed on that and thus ‘deviated’, and that by law, deviation would be regarded as mutual and thus not punishable.
Macobarb further asked the court to note that it was 16 months after commencement of contract that the NLNG wrote to demand for it as well as submitted the sample of the performance bond. The Claimant therefore argued that the Performance Bond did not stop the contract from performing for up to 18 months.
The Claimant’s counsel particularly drew the attention of the court to a section of the defendant’s address and said by NLNG’s admission that by November 27, 2025, that the contract was ‘coming to an end’ meant that they admitted that the contract was yet to come to an end by that time. She said this amounted to inconsistency which she said is not admissible in law. She attempted to quote authorities on that.
The judge is thus to determine if the Performance Bond was so crucial in the contract to warrant termination of the job, and if the right person known to the contract carried out the termination.
Macobarb particularly drew the attention of the court to the many steps they took up to the Nigerian Senate seeking peaceful resolution, but to no avail, probably to show that the company (Macobarb) was not just being a troublesome contractor.
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