Cases of Breach of Contract in Nigeria
Breach of contract refers to a situation where one party fails to fulfill their obligations as stipulated in a contract. In Nigeria, breach of contract has become a common issue, and it is essential for both parties to understand their rights and obligations. This article provides an overview of some notable cases of breach of contract in Nigeria.
1. Dangote Group vs. Ibeto Cement Company Limited
In 2016, Dangote Group, a Nigerian multinational conglomerate, filed a lawsuit against Ibeto Cement Company Limited for breach of contract. Dangote claimed that Ibeto breached a 2014 agreement to supply it with 11,000 metric tons of cement monthly. Dangote claimed that Ibeto only delivered 2,000 metric tons in the first month and did not deliver any more cement after that. The case is ongoing.
2. Abuja Environmental Protection Board vs. Metrohouse Ltd.
In 2018, the Abuja Environmental Protection Board filed a lawsuit against Metrohouse Ltd. for breach of contract. The board claimed that Metrohouse Ltd. failed to pay a waste management fee of N29,500 per month as agreed in a contract. The board alleged that Metrohouse Ltd. owed it N965,500 in unpaid fees. The case was resolved out of court.
3. Megatech Engineering Ltd. vs. Delta State Government
In 2018, Megatech Engineering Ltd. sued the Delta State Government for breach of contract. The company claimed that the state government failed to pay N394 million for the construction of a road. The Delta State Government argued that the project was not completed in accordance with the contract, and therefore, it was not obligated to pay. The case is ongoing.
4. Nigerian National Petroleum Corporation vs. Process and Industrial Developments Ltd.
The Nigerian National Petroleum Corporation (NNPC) is currently embroiled in a legal battle with Process and Industrial Developments Ltd. (P&ID) over a breach of contract. P&ID claimed that NNPC breached a gas supply and processing agreement signed in 2010. The agreement required NNPC to supply natural gas to P&ID`s processing plant. P&ID claimed that NNPC failed to fulfill its obligations, leading to the collapse of the project. In 2017, P&ID was awarded $6.6 billion in damages by a UK court. The case is still ongoing.
Conclusion
These are just a few examples of the many cases of breach of contract that have occurred in Nigeria. It is important for both parties to understand their rights and obligations before entering into a contract. If a breach does occur, the affected party should seek legal advice to ensure that their rights are protected.
