National Theatre awarded N19.4b for contract breach

Arbitration Tribunal in Lagos has ordered SANEF Creatives Limited, owned by Bankers’ Committee of Central Bank of Nigeria (CBN) to pay N19.4 billion to Hanson Dredging and Marine Service Limited (HDMS).

The payment is for the unlawful termination of its contract for dredging and reclamation work at Lagos Creative Entertainment Centre (LCEC), known as National Theatre.

Sole Arbitrator, Ayo Fanimokun, gave the order on December 30 in his final arbitral award in the dispute between HDMS and SANEF Creatives.

SANEF is a special-purpose vehicle of Bankers’ Committee comprising CBN and banks.

HDMS took SANEF before Council for Regulation of Engineering in Nigeria (COREN) Arbitration Tribunal in 2023 after its contract was unlawfully terminated in May 2022.

In its claims through Dr. Charles Mekwunye (SAN), HDMS averred that having signed the contract for dredging and reclamation of LCEC with SANEF on November 11, 2021, it mobilised to site.

It claimed to have completed over 60 per cent of the job when SANEF cancelled the contract on the grounds that the 36-week completion date stated in the contract terms had elapsed.

The firm said some unanticipated risk factors and the prevailing economic situation in the country compounded by  COVID-19 delayed execution of the contract, and it requested review of the contract sum.

It said instead of conceding to its request, SANEF unlawfully terminated the contract and the CBN interfered by directly debitting the full amount of N4.2 billion made to HDMS.

THE NATION