Court orders liquidation of Dantata & Sawoe over unpaid $1.4m debt

The Federal High Court in Abuja has appointed a liquidator to wind up Dantata & Sawoe Construction Company Limited over its failure to settle a $1.4 million project debt owed to Zutari Consulting Nigeria Ltd.

Justice Mohammed Umar made the order on Wednesday after ruling that the construction firm had been given several opportunities to pay the outstanding amount but repeatedly failed to do so.

The debt stemmed from a settlement agreement involving an alleged $1.3 million ($1,257,592.83) owed to Zutari Consulting for subcontracted work on the Dangote Fertilizer Plant project in Lekki, Lagos.

The court’s decision comes months after granting approval for the publication of a winding-up petition against Dantata & Sawoe in two national newspapers.

Zutari Consulting, an engineering design and supervision company, and Dantata & Sawoe, a major construction contractor, have been locked in a dispute since the completion of subcontract works in 2015.

Zutari said the construction firm became indebted to it to the tune of $1,257,592.83, ZAR 2,136,623.39, and £4,364.38 after it concluded its design obligations.

Unable to resolve the matter amicably, the parties took the dispute to arbitration before the International Chamber of Commerce in London. On 7 April 2021, the tribunal ruled in favour of Zutari, holding Dantata & Sawoe liable for the outstanding payments.

In its defence, Dantata & Sawoe filed a preliminary objection on 9 May 2023, arguing that the Federal High Court lacked jurisdiction and informing the court of an ongoing appeal and settlement talks.

However, when the matter resumed on Wednesday, counsel to the petitioner, Chris Ekemezie, informed the court that the company had failed to settle the debt, insisting that the proposed 75 per cent payment offered by Dantata & Sawoe was unacceptable.

The respondent’s lawyer, I.I. Okim, maintained that the offer was made in good faith.

Justice Umar noted that the case had been adjourned three separate times to allow Dantata & Sawoe to settle the debt, but the company continued to present excuses.

He concluded that the respondent lacked willingness to meet its obligations.

Consequently, the judge granted the request to appoint Joseph Abiolu as liquidator to wind up Dantata & Sawoe in accordance with Sections 571(d), 572, and 573(1)(b) of the Companies and Allied Matters Act (CAMA) 2020, which outline the conditions for court-ordered winding-up of companies.

The matter has been adjourned to 18 February 2026 for the liquidator to present his report.