$1.4m Project Debt: Court Appoints Liquidator for Dantata & Sawoe
The Federal High Court in Abuja, on Wednesday, appointed a liquidator for Dantata & Sawoe Construction Company Limited over its failure to pay $1.4 million in project debt.
The sum is in accordance with the terms of a settlement agreement, regarding an alleged $1,257,592.83 debt owed to Zutari Consulting Nigeria Ltd, following subcontract work on the Dangote Fertilizer Plant project in Lekki, Lagos.
Justice Mohammed Umar, who granted Zutari Consulting’s request for the appointment of a liquidator, held that Dantata & Sawoe had been given ample time by the court to settle the debt but the company repeatedly presented excuses.
The development came months after the court approved the publication of a winding-up petition advertisement against Dantata & Sawoe in two national dailies.
While Zutari Consulting is involved in engineering design, consulting, and supervision of engineering works, Dantata & Sawoe is engaged in general construction services.
The court had, in September 2024, granted the parties a 30-day extension for settlement and adjourned the matter several times to hear Zutari Consulting’s motion seeking the appointment of a provisional liquidator for Dantata & Sawoe over the alleged debt.
Zutari Consulting’s lawyer, Chris Ekemezie, had told the court that arbitration over the matter was conducted in London, United Kingdom, and that a final arbitral award issued on April 7, 2021, held Dantata & Sawoe liable for the debt.
While Zutari Consulting is the petitioner, Dantata and Sawoe is the respondent.
Ekemezie stated that the petitioner was engaged by the respondent in 2015 to execute some design components of the respondent’s subcontract works at the Dangote Fertilizer Plant project in Lekki.
He contended that after the petitioner completed the job, Dantata & Sawoe became indebted to it in the sum of “$1,257,592.83, ZAR 2,136,623.39, and £4,364.38.”
He argued that the respondent’s failure to pay the outstanding amount led to a dispute which was referred to the International Chamber of Commerce for arbitration after both parties were unable to resolve it themselves, and the tribunal ruled in the petitioner’s favour.
However, in a notice of preliminary objection filed on May 9, 2023, Dantata & Sawoe’s legal team urged the court to strike out the petition for lack of jurisdiction.
It informed the court that an appeal had been filed amid ongoing settlement negotiations.
When the case was called on Wednesday, lawyer to the petitioner, Ekemezie, told the court that the respondent had failed to fully settle its debt.
The lawyer explained that his client’s entitlements were far above the 75 per cent payment proposed by Dantata & Sawoe.
But Dantata’s counsel, I. I. Okim, maintained that they offered to pay 75 per cent of the debt, however, the consulting firm rejected the offer.
After hearing both parties, the judge observed that the case had been adjourned three times to allow the respondent to settle the debt, yet the company continued returning with excuses.
Justice Umar, who noted Dantata & Sawoe’s unwillingness to pay the debt, subsequently granted the petitioner’s request to appoint Joseph Abiolu, FCA, as liquidator to wind up the company.
He said this was in line with Sections 571(d), 572, and 573(1)(b) of the Companies and Allied Matters Act (CAMA) 2020, which outline circumstances and procedures for court-ordered winding up.
The judge then adjourned the matter until to Feb.18, 2026, for the liquidator’s report. Ikeja Hotel Hits Highest Valuation in 52-Week, Gains 45%
