N5bn Contract: NLNG Sustains Defence Against Macobarb’s Claim With Own Witness Cross Examination

The Nigeria Liquefied Natural Gas Limited (NLNG) continued its defence in the N5.074bn claim by one of its indigenous contractors, Macobarb International Limited at a Rivers State High Court for breach of contract.

Macobarb had dragged the gas giant to the court sitting in Port Harcourt where its defence continued most of March 2025 and would continue on April 8.

The case with suit number HC/2013/CS/2022 which opened in 2022 saw Macobarb leading a trove of documents and one witness, a forensic accountant from Jos, Plateau State.

Now, the NLNG with a team of counsels led by Professor Bayo Adaralegbe, has fielded one witness, Osa Olomu, who testified in court that he has knowledge of all matters pertaining to the project in dispute.

Olomu insisted that the NLNG did not do wrong in the contract and that what they paid was what Macobarb deserved.

The highpoint of the counter examination was when the witness was given exhibit YJ40d to hold. He held it.

Claimant’s lawyer, Dr. Nwieke Dignity, asked him if he could confirm to the court that Macobarb met the obligation of the first schedule of contract terms by successfully placing order for and paying the first instalment (which is 50% of the item to be fabricated abroad) which amounts to 57.5% of work done in that schedule. He answered “not really” but did not explain what he meant.

Pressed by the claimant’s counsel on exhibit YJ40b and 40d to agree that the claimant had performed or acted on the agreed schedule of exhibit YJ7, the witness said; “No, at the last session I explained to this honourable court that I cannot speak specifically on this”.

The defence witness stated that the amount – N32million – in exhibit YJ40A was not paid to the Claimant (Macobarb) because “This is not an invoice, it is an internal document, rather exhibit YJ6 which is an invoice represents N8million for value of work done.”

He however admitted that the NLNG paid only N7million out of N32million to the Claimant from the contract start date of 9th January 2014 to the alleged contract close-out date of 10th February, 2016.

He insisted that only invoices validly submitted in line with the contract as contested were paid.

When asked if the witness was aware that by section 7(5.11) of exhibit YJ12, any cost incurred by the Claimant due to the defendants’ default shall be added to the contract cost to be paid to the Claimant, he responded, “Not correct.”

The court seemed to murmur when the claimant’s lawyer put it to the witness that the Defendant’s failure to pay the first milestone work done of N32million, which the Counsel said became due and uncontested by the defendant, was the genesis of the breaches and was done intentionally and maliciously to frustrate the execution of the project.

The case will continue on April 8, 2025.

Macobarb International Limited, an indigenous contractor had dragged the NLNG to court claiming over N1Bn (now amended to N5.074Bn) for alleged breaches to a contract (B130142PPI, Access Control) in the NLNG plant area with three years duration.

The suit said the contract provided that Macobarb be paid bit by bit progressively based on the value of verified work done.

Macobarb in its claims said the contract also forbade delay of any kind in the project and provided for penalty on whoever caused the delay. It also provided for alert system should anything want to cause a delay.

Macobarb said it activated the alert clauses when payment delays began to happen but that nothing was done to rectify the delays until the contract was terminated.