A High Court in Port Harcourt, Rivers State, has set July 16, 2025, to decide a case in which the Nigeria LNG (NLNG) was accused of breaching a contract it awarded to a local contractor, Macobarb International Limited.
Justice Chinwendu Nwogu, which is handling the matter with the suit number PHC/2013/CS/2022, will also decide and rule if the breach led to costs as high as N5.74 billion, which the claimants are seeking.
The fixing of the date of judgment came on Tuesday, June 24, 2025, after counsels for both parties adopted and adumbrated their final written addresses, each seeking to convince the judge to rule in their client’s favour.
Macobarb had sued NLNG, claiming it breached the terms of contract and that this breach led to various costs amounting to N5.74 billion, saying the contract was deemed to still be running and that cost is rising.
Adopting their address, the lead counsel to Macobarb, Mr 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.”
He also said 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, adding that the built their claim on the ground that the person that terminated the contract (Mr Emeka Ohiri) was not known to the contract.
It was claimed that the Contract Holder is a Mr Dweller Francis, clarifying that the said Mr 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.
The claimants final address noted that to demonstrate that the contract is still in existence, the defendant 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 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 that the contract is yet to be closed out and to also note that the defendant (NLNG) admitted receipt of materials including 20ft container from the claimants.
On its part, the NLNG lead counsel, Mr Bayo Aderelegbe, asked the court to determine whether the second claimant was a party to the contract and can sue in respect of the contract.
But Macobarb countered this, arguing that this contention by the NLNG 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 his client breached the contract as alleged by the claimants; whether the defendant wrongfully terminated the contract; and whether the claimants were entitled to the N5.74 billion.
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.