A Rivers State High Court sitting in Port Harcourt has dismissed a N5.074 billion breach of contract suit filed by indigenous construction firm, Macobarb International Limited, against the Nigerian Liquefied Natural Gas (NLNG) Limited.
The suit, filed in 2022 under case number HC/2013/CS/2022, accused NLNG of breaching payment terms in a contract and causing significant project delays and financial losses. However, in a ruling delivered by Justice Chinwendu Nwogu, the court held that NLNG did not violate any contractual obligations.
Justice Nwogu ruled that Macobarb failed to establish that the gas company unlawfully withheld payments or breached the contract terms. He noted that under the agreement, only work approved by NLNG qualified as “work done,” and the contractor’s claims did not meet that threshold.
The court also dismissed Macobarb’s reliance on the role of a designated ‘contract holder,’ stating that the individual was merely responsible for daily oversight and not the sole authority on NLNG’s behalf. Furthermore, the judge ruled that any NLNG-authorised official could terminate the contract, contrary to the contractor’s interpretation.
The judge added that the contract made no provision for ‘stand-down payments’—a key part of Macobarb’s claim—and held that delays cited by the contractor were not caused by NLNG. He also said that issues related to loan mismanagement by the contractor could not be attributed to the company.
The ruling effectively upheld NLNG’s position on all major grounds.
Reacting outside the courtroom, Macobarb CEO, Shedrack Ogboru, expressed deep disappointment with the judgment. He alleged that the judge ignored the central issues and contractual terms presented in the case.
“I presented my case 100 percent; NLNG’s case was zero. Yet, the court upheld NLNG’s position. I pity indigenous contractors in Nigerian courts—we are doomed,” Ogboru said.
He lamented what he described as a systemic bias against local contractors in Nigeria, claiming that justice is rarely served when indigenous firms confront large corporations, especially in the oil and gas sector.
Macobarb initially sought over N1 billion in damages, later amending the suit to N5.074 billion. The contract in question, referenced as B130142PPI (Access Control), was tied to a three-year project within the NLNG plant area and stipulated progressive payments based on verified work.
With the court’s ruling, NLNG has been cleared of all liability in the dispute.
