PORT HARCOURT
– Nigeria Liquefied Natural Gas Limited (NLNG) has been consistently defending itself against a lawsuit filed by an indigenous contractor, Macobarb International Limited, which is seeking compensation of N5.074 billion for alleged breaches of contract.
The lawsuit bearing suit number HC/2013/CS/2022 at a Rivers State High Court commenced in 2022, where Macobarb presented an array of documentation along with one witness—a forensic accountant hailing from Jos, Plateau State.
Currently, the NLNG, accompanied by a legal team headed by Professor Bayo Aderelegbe, has presented one witness named Osa Olomu. He testified in court after acknowledging that he possesses comprehensive knowledge about all aspects related to the disputed project.
Olomu maintained that the NLNG was not at fault regarding the contract and asserted that they provided what Macobarb was entitled to receive.
The climax of the cross-examination occurred when the witness was presented with exhibit YJ40d to hold. After holding it, Claimant’s attorney, Dr. Nwieke Dignity, questioned whether the witness could verify for the court that Macobarb fulfilled their contractual obligations under the first schedule by ordering and making payment towards the initial installment—50% of the product being manufactured overseas—which accounted for 57.5% of the work completed as per that schedule. The witness responded “not really” without providing further clarification.
When pressed by the claimant’s attorney about exhibits YJ40b and 40d, asserting that the claimant adhered to the schedule outlined in exhibit YJ7, the witness responded, “I must clarify, at our previous hearing, I stated that I am unable to address this matter with certainty.”
The defense witness asserted that the sum (N32 million) mentioned in exhibit YJ40A was not paid to the claimant (Macobarb), as “this is not an invoice; instead, it is an internal document. Exhibit YJ6, which serves as an actual invoice representing N8 million for services rendered, should be considered.”
However, he acknowledged that the NLNG released only ₦7 million out of the total ₦32 million to the claimants between the contract commencement on January 9, 2014, and the supposed conclusion date of February 10, 2016.
He maintained that payments were made exclusively for invoices properly submitted according to the disputed terms of the contract.
When queried about whether he knew according to section 7(5.11) of exhibit YJ12 that any expenses borne by the Claimant because of the defendants’ failure would be included in the contractual costs payable to the Claimant, he answered, “Incorrect.”
When the claimant’s attorney presented this argument to the witness, the courtroom appeared to whisper. The lawyer asserted that the defendant’s refusal to make the initial payment of ₦32 million for completed milestones—despite it being acknowledged as due and not contested by the defense—was the root cause of all subsequent violations. Furthermore, it was suggested that these actions were deliberately taken with malice aforethought to obstruct the completion of the project.
The proceedings will resume on April 8, 2025.
It might be known that Macobarb International Limited, a local contractor, has taken the NLNG to court. They are seeking more than N1 billion (which was later revised to N5.074 billion) due to claimed violations of a contract (B130142PPI, Access Control). This agreement pertained to work within the NLNG facility and lasted for three years.
The lawsuit stated that the agreement stipulated Macobarb should receive payments incrementally, according to the assessed worth of completed and confirmed tasks.
According to Macobarb’s statements, the contract explicitly prohibited any delays in the project and included penalties for those responsible for causing such delays. Additionally, it established an early warning system to address potential causes of delay.
Macobarb mentioned that the alert clauses were triggered once payment delays started occurring; however, no actions were taken to resolve these delays until the contract was eventually terminated.
Provided by Syndigate Media Inc. (
Syndigate.info
).