July 16: Judgment date set for NLNG-Macobarb contract dispute

A High Court sitting in Port Harcourt has fixed July 16, 2025 for judgement on claims of a N5.4 billion breach of contract, Macobarb International Limited, against the NLNG.

The Court fixed the date after both parties fiercely argued their cases on June 24, 2025.

Macobarb insists NLNG unlawfully terminated their agreement, causing massive financial losses.

The case, filed under suit number PHC/2013/CS/2022, centers on allegations of wrongful termination of a contract and claims for financial damages.

In this context, they aimed to clarify their positions and reinforce their legal claims before the court.

In particular, Macobarb alleges that NLNG unlawfully terminated their contract, resulting in significant financial losses.

Notably, lead counsel Benefit Vilokpo argued that the termination letter from November 27, 2015, lacked legal validity, asserting that the contract remains active with ongoing costs.

Furthermore, Vilokpo highlighted that the termination was issued by Emeka Ohiri, who lacked recognition as a party.

Conversely, Dweller Francis, the actual contract holder, did not serve any termination notice, raising doubts about legitimacy.

Additionally, Macobarb referenced a Project Close-Out Meeting held on February 19, 2016, where NLNG acknowledged outstanding obligations.

Specifically, this included material costs and demobilization expenses, supported by signed attendance records, emphasizing NLNG’s awareness of responsibilities.

In response, NLNG’s lead counsel, Professor Bayo Aderelegbe, defended the contract termination, asserting it was both legitimate and authorized.

He contended that the contract was based on lump sum payment terms, while Macobarb’s claims exceeded agreed limits.

Aderelegbe also questioned the legal standing of the second claimant, previously dismissed with a fine against NLNG.

Consequently, the court must determine whether NLNG breached the contract and if the termination was lawful.

In addition, it will assess whether Macobarb deserves N5.74 billion in damages.

Moreover, the court will evaluate the Performance Bond’s role and NLNG’s fulfillment of obligations during the Project Close-Out Meeting.

Moreover, Justice Nwogu reminded counsel that new legal authorities not included in original submissions would be disregarded in the judgment.

Consequently, the outcome of this case will significantly impact contract enforcement and corporate governance standards in Nigeria.

As July 16 approaches, both legal and business communities nationwide eagerly await this landmark ruling.

Ultimately, this ruling could reshape future contract dispute resolutions and clarify performance bond requirements.