Dangote Plant: Dantata & Sawoe faces liquidation hearing over $1.2 million alleged debt 

The alleged debt is related to subcontract work on the Dangote Fertilizer Plant project in Lekki, Lagos, Nigeria.

Justice Inyang Ekwo fixed the date after Zutari’s lawyer, Chris Ekemezie, queried the absence of Dantata & Sawoe’s legal team from today’s proceedings.

Naijaonpoint previously reported that the court had, on October 28, 2024, given Dantata & Sawoe and Zutari Consulting a final adjournment to settle issues concerning the alleged $1,257,592.83 debt.

Justice Inyang Ekwo had fixed January 2025 as the last adjournment for a report on the settlement, months after he approved the placement of a winding-up petition advertisement against Dantata in a motion on notice filed by Zutari Consulting Nigeria Ltd (the petitioner) in Suit No: FHC/ABJ/PET/3/2023.   

Naijaonpoint reports that the petitioner is involved in engineering design, consulting, and supervision of engineering works, while Dantata & Sawoe is a leading general construction company in Nigeria with over 40 years of experience.

The petitioner’s lawyer, Chris Ekemezie, submitted that their client was engaged by the respondent in 2015 for design work related to the respondent’s subcontract at the Dangote Fertilizer Plant project in Lekki, Lagos, Nigeria.

He contended that after the petitioner completed its work, Dantata & Sawoe allegedly became indebted to it in the sum of $1,257,592.83, ZAR 2,136,623.39, and £4,364.38.

The petitioner stated that arbitration over the matter was held in London, United Kingdom, and a final arbitral award was made by the arbitration tribunal on April 7, 2021, finding that Dantata & Sawoe was liable to the applicant for the stated debts.

However, in a notice of preliminary objection filed on May 9, 2023, Dantata’s legal team had urged the court to strike out the petition.

Dantata & Sawoe’s legal team argued that the conditions under which the petitioner sought to wind up their client were completely lacking in merit.

In an affidavit deposed on May 9, 2023, Sherwin Cayabyab, an employee of the respondent, denied the indebtedness claimed by the petitioner.

He admitted that his company engaged the petitioner’s services for a subcontract at the Dangote Fertilizer Plant for the sum of N162,000,000.00, which had been paid.

However, he explained that the subcontract was varied, as agreed by the petitioner, the respondent, and Saipem (Dangote).

In a ruling in July 2024, Justice Inyang Ekwo stated that Dantata’s objection was made against the substantive matter and not against the petitioner’s motion on notice to advertise the petition.

The judge noted that, contrary to Dantata & Sawoe’s submission, the law allows a winding-up petition to proceed despite the pendency of other processes, as all that is required for the petition to succeed is that the respondent owes the petitioner a debt of N200,000 and above.

The judge noted that, contrary to Dantata & Sawoe’s submission, the law allows a winding-up petition to proceed despite the pendency of other processes, as all that is required for the petition to succeed is that the respondent owes the petitioner a debt of N200,000 and above.

During one of the court sittings, Dantata’s lawyer, Uchenna Njoku (SAN), noted that following the court’s ruling, they had filed a notice of appeal and an application for a stay of proceedings.

What transpired in court   

In his motion and written address seen by Naijaonpoint, he sought an:   

“Order of the court appointing a Provisional Liquidator for Dantata & Sawoe Construction Company Nigeria Limited (RC 18876) (In Liquidation), pursuant to the court’s order made on July 12, 2024, which granted leave to the petitioner to advertise the winding-up petition.

“Order directing all directors and officers of the company to hand over all assets, business records, monies, account books, and properties of Dantata & Sawoe Construction Company Nigeria Limited (in Liquidation) in their possession to the Provisional Liquidator. 

“Order mandating the Inspector General of Police, the Commissioner of Police of the Federal Capital Territory, and all policemen under them** to assist the Provisional Liquidator in taking over Dantata & Sawoe Construction Company Nigeria Limited (in Liquidation).” 

He argued that the petitioner seeks the liquidation order because the company has allegedly become insolvent and unable to pay its debt.

He added that on July 12, 2024, the court ordered that the winding-up petition against Dantata be advertised in two newspapers, and the petitioner complied with the order.

“As a result of compliance with the said order of the court, it has become necessary for the court to appoint a Provisional Liquidator to take over the company’s assets in order to actualize the court’s order,” he stated.   

He cited Section 585 (1) & (2) of the Companies and Allied Matters Act (CAMA) 2020, which empowers the court to appoint a Provisional Liquidator for a company in liquidation.

He argued that the nominee in his motion has been a chartered accountant since 1989 and can effectively discharge the duties and functions of Dantata & Sawoe Construction Company Nigeria Ltd’s board.

The lawyer urged the court to grant the application, stating that doing so “will bring justice.”

Justice Inyang Ekwo subsequently adjourned the case to February 26, 2025, for a hearing on the petitioner’s motion.

He ordered that hearing notices be issued to the parties.

Naijaonpoint reports that the Federal High Court has jurisdiction over transactions involving the parties.

Naijaonpoint also gathered that an appeal on the development is pending at the Court of Appeal