Mkpoikana Udoma
Port Harcourt — The Rivers State High Court sitting in Port Harcourt has granted the Nigeria LNG Limited three additional days for cross-examination in its legal battle against indigenous contractor, Macobarb International Limited, which is demanding N5.74 billion for an alleged contract breach.
This extension follows Macobarb’s submission of additional documents to support its claim that the NLNG failed to pay for work done under a 2014 contract. The new exhibits, which were marked YJ-40 to YJ-48, were admitted by Justice Chinwendu Nwogu, prompting the extension of cross-examination to February 21, 27, and 28, 2025.
Macobarb International Limited and its Managing Director, Shedrack Ogboru, initiated legal proceedings against the NLNG, alleging a breach of contract (B130142PPI, Access Control) at the NLNG plant area.
The company initially sought N1 billion in damages, later amending the claim to N5.74 billion, arguing that the contract required progressive payments based on verified work done. Macobarb maintains that despite alert clauses designed to prevent delays, payments were withheld, causing significant setbacks. The company further argues that the contract was wrongfully terminated while its equipment and materials remained on-site, accruing value.
In contrast, the NLNG insists that the contract was properly terminated and all necessary payments were made. The company argues that Macobarb’s claims, particularly regarding “standby payments,” are not stipulated in the contract and that the contractor is attempting to claim funds for work that was not completed.
As the legal battle continues, Macobarb has submitted several new documents to strengthen its case. Among these is Exhibit YJ-40, which details the first milestone payment requisition amounting to N32 million, along with proof that Macobarb had paid over $134,000 for procured items.
Another document, Exhibit YJ-41, contains emails from Babalakin & Co. acknowledging communications between Macobarb and NLNG’s Managing Director, Dr. Philip Mshelbila dated 06/02/2023.
Further strengthening its argument, Macobarb presented Exhibit YJ-42, in which a forensic accountant corrected a typographical error in his computations regarding contract payments. Additionally, Exhibit YJ-43 includes an email from the NLNG rejecting Macobarb’s N600 million standby cost claim, citing that no actual work was completed to justify the claim.
A significant piece of evidence, Exhibit YJ-44, contains minutes from a 2015 contract meeting where the NLNG clarified that payments were based strictly on work done, rather than on the mere delivery of materials. In response to the NLNG’s notice of default and contract termination, Macobarb submitted Exhibit YJ-45, challenging the validity of the termination.
To further bolster its case, Macobarb submitted Exhibit YJ-46, a “Notice of Dispute”, which it claims was permitted by the contract but was ignored by the NLNG. In Exhibit YJ-47, minutes from “Progress Review Meeting No. 17” were provided, outlining the percentage of work completed, which Macobarb argues should have been the basis for the second milestone payment request that remains unpaid.
Finally, Exhibit YJ-48 presents the NLNG’s contract termination notice, signed by Emeka Ohiri, whom Macobarb contends was not an authorized signatory under the contract.
Although the NLNG initially objected to the submission of these additional documents, the court ruled in favor of Macobarb, allowing them as evidence.
Now, with more cross-examination days granted, the NLNG’s legal team, led by Prof. Bayo Aderelegbe, is expected to challenge the credibility of Macobarb’s claims and the authenticity of the documents.
Previously, the NLNG had attempted to have the case dismissed on the grounds that it was statute-barred and that the second complainant (Ogboru) was not a proper party to the suit. However, Justice Chinwendu Nwogu ruled against these objections and imposed a N200,000 cost on the NLNG.
With the case now progressing to further cross-examination on February 21, 27, and 28, 2025, the NLNG is expected to intensify its defense, seeking to discredit Macobarb’s claim that the contract was still valid and that payments were wrongfully withheld.
On its part, Macobarb International Limited remains firm in its position, arguing that the NLNG’s refusal to honor the contract terms has led to financial losses exceeding N5 billion. The company asserts that the additional exhibits provide concrete evidence that it fulfilled its contractual obligations and is entitled to payment for work done.
