Dantata & Sawoe Construction Company Nigeria Limited, chaired by Mubarak Dantata, is facing a liquidation hearing at the Federal High Court in Abuja over an alleged $1,257,592.83 debt owed to Zutari Consulting Nigeria Ltd. The dispute, which has been ongoing since 2021, stems from a subcontract at the Dangote Fertilizer Plant project in Lekki, Lagos.
The case, Suit No: FHC/ABJ/PET/3/2023, is being heard by Justice Inyang Ekwo, who has fixed February 26, 2025, for a motion to appoint a Provisional Liquidator to take over Dantata & Sawoe’s assets.
Legal Dispute and Arbitration Ruling
According to Zutari Consulting’s legal team, Dantata & Sawoe engaged the firm in 2015 for engineering design, consulting, and supervision work related to its subcontract at the Dangote Fertilizer Plant. Zutari alleges that despite completing the project, Dantata & Sawoe failed to settle outstanding debts amounting to:
•$1,257,592.83
•ZAR 2,136,623.39
•£4,364.38
The case went to arbitration in London, and on April 7, 2021, the tribunal ruled in favor of Zutari, confirming that Dantata & Sawoe was liable for the debt. However, the company has yet to comply with the ruling, leading to a winding-up petition filed in 2023.
Dantata & Sawoe’s Defense
In response, Dantata & Sawoe’s legal team filed a notice of preliminary objection on May 9, 2023, urging the court to strike out the petition. They argued that Zutari’s claim lacked merit, maintaining that:
•The subcontract was initially worth N162 million, which had been fully paid.
•Zutari agreed to contract variations involving Dantata & Sawoe and Saipem (Dangote).
•The alleged debt is disputed.
In an affidavit deposed by Sherwin Cayabyab, an employee of the respondent, Dantata & Sawoe denied any outstanding debt obligations beyond what had already been settled.
Court Rulings and Push for Liquidation
On July 12, 2024, Justice Inyang Ekwo ruled that the winding-up petition could proceed, stating that under Nigerian law, a winding-up petition is valid if a company owes at least N200,000.
Following this ruling, Zutari was granted leave to advertise the petition in two newspapers, fulfilling a key legal requirement for liquidation proceedings.
At the resumed sitting on January 30, 2025, Zutari’s lawyer, Chris Ekemezie, informed the court that:
•Dantata & Sawoe’s legal team was absent without explanation.
•No settlement efforts had been made despite previous adjournments.
•The court should proceed with appointing a Provisional Liquidator.
Ekemezie’s motion requests:
1.Appointment of a Provisional Liquidator for Dantata & Sawoe Construction Company Nigeria Limited.
2.Handover of all company assets, accounts, and records to the liquidator.
3.Police assistance in executing the takeover, including enforcement by the Inspector General of Police and the Commissioner of Police for the Federal Capital Territory.
Ekemezie argued that liquidation is necessary as Dantata & Sawoe has become insolvent and is unable to pay its debt. He cited Section 585 (1) & (2) of the Companies and Allied Matters Act (CAMA) 2020, which empowers the court to appoint a Provisional Liquidator for a company in liquidation.
Next Steps – February 26, 2025 Hearing
Justice Inyang Ekwo has adjourned the case to February 26, 2025, for a hearing on the liquidation motion and ordered that hearing notices be issued to all parties.
Meanwhile, Dantata & Sawoe has filed an appeal at the Court of Appeal, seeking to overturn the winding-up petition.
With Mubarak Dantata’s construction empire facing a major legal and financial battle, Richlist Nigeria will continue to monitor the proceedings and provide updates on this high-stakes case.
