PORTHARCOURT – The Nigeria Liquefied Natural Gas Limited (NLNG) has continued its defence in a N5.074 billion contract dispute filed by indigenous contractor Macobarb International Limited, alleging a breach of contract.
The case, filed under suit number HC/2013/CS/2022 at the Rivers State High Court, commenced in 2022. Macobarb has presented documentary evidence and called a forensic accountant from Jos, Plateau State, as its witness.
Represented by a legal team led by Professor Bayo Aderelegbe, NLNG fielded a witness, Osa Olomu, who testified in court, affirming his knowledge of the disputed project. Olomu maintained that NLNG had fulfilled its contractual obligations and paid Macobarb what was duly owed.
During cross-examination, Olomu was handed exhibit YJ40d and asked by Macobarb’s counsel, Dr. Nwieke Dignity, whether the contractor had met the obligations of the first contract schedule. Specifically, he was asked to confirm whether Macobarb had successfully placed an order and paid the first installment—50% of the overseas fabrication cost—representing 57.5% of the scheduled work. Olomu responded, “Not really,” without further clarification.
When pressed on exhibits YJ40b and YJ40d concerning Macobarb’s adherence to the agreed schedule in exhibit YJ7, Olomu stated, “No, at the last session I explained to this honourable court that I cannot speak specifically on this.”
Regarding payments, Olomu contended that the N32 million referenced in exhibit YJ40A was not paid to Macobarb, asserting that it was an internal document rather than an official invoice. He stated that only N8 million was validly invoiced, of which NLNG paid N7 million between the contract start date of January 9, 2014, and its disputed termination on February 10, 2016.
The witness also argued that only invoices properly submitted in accordance with the contract were paid. When questioned about section 7(5.11) of exhibit YJ12—which stipulates that costs incurred due to the defendant’s default should be added to the contract cost—Olomu disagreed, stating, “Not correct.”
A moment of tension arose in court when the claimant’s counsel suggested that NLNG’s failure to pay the first milestone sum of N32 million was deliberate and malicious, aimed at frustrating the project’s execution. The unpaid amount, according to Macobarb’s lawyer, was uncontested by NLNG and marked the beginning of contractual breaches.
The case is scheduled to continue on April 8, 2025.
Macobarb initially filed a claim exceeding N1 billion, later amended to N5.074 billion, alleging breaches of contract B130142PPI related to access control at the NLNG plant over a three-year period. The contractor asserts that payments were to be made progressively based on verified work completion and that any delays—explicitly prohibited by the contract—would result in penalties.
Macobarb claims to have activated contractual alert clauses in response to payment delays but alleges that NLNG failed to address the issues, ultimately leading to the contract’s termination.
