Tribunal awards N19.bn to HDMS over breach of contract on National Theatre

Ogunsakin Mustapha
2 Min Read

By Hassanat Adebowale

An Arbitration Tribunal in Lagos has ordered SANEF Creatives Ltd, a company linked to the Bankers’ Committee of the Central Bank of Nigeria (CBN), to pay ₦19.4 billion to Hanson Dredging and Marine Service Ltd (HDMS) for unlawfully terminating its contract for dredging and reclamation at the Lagos Creative Entertainment Centre (LCEC), known as the National Theatre.

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Sole Arbitrator Ayo Fanimokun issued the order on December 30, 2024, in his final decision on the contractual dispute. HDMS brought the case to the tribunal, formed by the Council for the Regulation of Engineering in Nigeria (COREN), after SANEF ended their contract in May 2022.

According to HDMS, the contract, signed on November 11, 2021, was 60% complete when SANEF canceled it, claiming the 36-week deadline had passed. HDMS argued that delays were due to unforeseen challenges, including the COVID-19 pandemic, and sought a review of the contract terms, which SANEF denied. Furthermore, HDMS alleged that CBN unlawfully deducted ₦4.2 billion from its account.

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HDMS sought 13 reliefs, including declarations that the contract termination was premature and unlawful, and demanded ₦35 billion in general damages and ₦9.1 billion in special damages.

In response, SANEF, represented by former Nigerian Bar Association (NBA) President Paul Usoro (SAN), maintained that the termination was lawful and counterclaimed ₦70 billion for alleged losses.

After eight hearings and the examination of 46 exhibits, Fanimokun concluded that SANEF’s failure to terminate the contract on the original due date was a waiver of their right to insist that time was of the essence. He also criticized CBN’s interference, describing it as an abuse of power.

The tribunal awarded HDMS ₦14.1 billion in special and general damages and an additional ₦5.33 billion for the value of the completed work. The ruling included a 25% annual interest from the date of the award.

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