No Indigenous Contractor Can Win NLNG, Oil Majors in Nigerian Courts – Macobarb CEO Cries Out as Justice Nwogu Throws Out Firm’s N5.74Bn Claim

Justice Chinwendu Nwogu of the Rivers State High Court in Port Harcourt has dismissed a N5.74 billion suit filed by an indigenous contractor, Macobarb International Limited against the Nigeria Liquefied Natural Gas Limited (NLNG), in a case centered on alleged breach of contract and financial losses.

The suit, numbered PHC/2013/CS/2022, was instituted by Macobarb’s Chief Executive Officer, Shedrack Ogboru, who claimed that the NLNG failed to honour agreed terms, particularly regarding payment schedules and project execution timelines under contract B130142PPI (Access Control) within the NLNG plant area.

Speaking to journalists after the ruling, a visibly distressed Ogboru decried the judgment, alleging systemic injustice against indigenous contractors.

He stated that the court ignored key elements of the contract and evidence presented, which he believed clearly established breaches on the part of the NLNG.

“My case is presented 100%, the NLNG’s case is zero; but surprisingly, the NLNG has rather been upheld, and Macobarb denied. I pity indigenous contractors in Nigerian courts. We are doomed.”

He further lamented that many local contractors have suffered or even died due to what he described as persistent injustice in dealings with international oil companies (IOCs), expressing that only foreign jurisdictions offer fair hearings in such disputes.

In his judgment, however, Justice Nwogu held that the NLNG did not breach the contract and that no unlawful denial of payments occurred.

He stated that work done by Macobarb did not qualify as “work executed” under the contract without NLNG’s formal verification and approval.

The judge clarified that the “contract holder” nominated by NLNG functioned merely as a day-to-day supervisor and not the sole authority for contract execution, and that any authorised NLNG official had the right to terminate the contract.

On the contractor’s claims regarding standdown payments and project delays, the court ruled that the contract did not provide for such payments, and that the NLNG could not be held responsible for delays.

The court also found that the financial challenges faced by the contractor were due to mismanagement of bank loans rather than any breach by the NLNG.

Justice Nwogu upheld nearly all the arguments presented by NLNG, dismissing the contractor’s claims in full and issuing strong remarks against Macobarb’s case presentation.

Recall that Macobarb had initiated the legal action in 2022, seeking compensation initially valued at over N1 billion but later amended to N5.074 billion.

The contractor claimed that payments were to be made in tranches based on certified progress of work and that the contract forbade any delays, providing for penalties against any party responsible for such.

Macobarb stated it had triggered the contract’s alert mechanism once delays began but alleged that NLNG failed to act to resolve them, leading to eventual termination of the contract.

The contractor further claimed that the contract letter was signed by an unauthorised person and that delays and withheld payments constituted a breach of the agreement.

The court’s ruling marks the end of a prolonged legal battle, but the CEO’s comments have sparked renewed conversations about the challenges faced by indigenous firms in enforcing contracts against large multinational corporations in Nigeria.