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The Federal High Court in Abuja on Friday pulled back Dantata & Sawoe Construction Company Limited, one of Nigeria’s leading construction and engineering companies, from the verge of liquidation.
The court issued the order saving the nearly 50 years old company from liquidation following the settlement of its $1.4 million indebtedness to Zutari Consulting Nigeria Ltd.
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Judge Mohammed Umar struck out the winding-up proceedings after it was confirmed that Dantata & Sawoe had finally executed the $1.4 million settlement agreement covering the $1,257,592.83 debt owed for subcontract work on the Dangote Fertilizer Plant project in Lekki, Lagos.
The development came months after the court approved the publication of a winding-up petition in two national dailies against the company, co-owned by an heir of the wealthy Dantata business family in Kano.
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It also came on the heels of the court’s order issued just nine days ago appointing a liquidator to wind up the firm following reports that Dantata was not forthcoming in fully paying its debt.
The judge in his ruling appointing a liquidator for the company on 3 December held that Dantata & Sawoe had been given ample time by the court to settle the debt but repeatedly presented excuses.
Intensified efforts to clear debt
However, Dantata & Sawoe apparently intensified efforts to settle its debt after the court appointed liquidator to wind it up on 3 December.
The News Agency of Nigeria (NAN) reports that Dantata & Sawoe filed a motion on notice on the following day, 4 March, indicating that it had fully paid the entire $1.4 million debt.
The company, in a motion on notice filed by its lawyer, Mr I.I. Okim, noted that it had fully paid the debt owed to Zutari Consulting Nigeria Ltd for the subcontract work.
The case stemmed from the terms of a settlement agreement regarding an alleged $1.3 million ($1,257,592.83) debt owed to Zutari Consulting Nigeria Ltd, following subcontract work on the Dangote Fertilizer Plant project in Lekki, Lagos.
Zutari Consulting stated that it was engaged by Dantata & Sawoe in 2015 to execute some design components of the respondent’s subcontract works at the Dangote Fertilizer Plant project in Lekki.
While Zutari Consulting is involved in engineering design, consulting, and supervision of engineering works, Dantata & Sawoe is engaged in general construction services.
Zutari Consulting, the petitioner who initiated the winding-up proceedings, contended that after it 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.”
It said Dantata & Sawoe’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. It said the tribunal ruled in its favour.
In September 2024, the court 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 legal team had told the court that arbitration over the matter was conducted in London, United Kingdom, and that a final arbitral award issued on 7 April 2021, held Dantata & Sawoe liable for the debt.
However, in a notice of preliminary objection filed on 9 May 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.
Thursday’s hearing
At Thursday’s hearing both Zutari Consulting, represented by its lawyer E. Joshua and Dantata & Sawoe’s lawyer, Mr Okim, confirmed to the court that their clients had reached a settlement.
The lawyers confirmed that Dantata & Sawoe had cleared the outstanding debt.
Mr Okim, therefore, urged the court to grant the company’s motion in view of the latest development.
In response, Mr Joshua made an oral application to discontinue the liquidation case against Dantata & Sawoe.
The judge, Mr Umar, granted the application after hearing from counsel for the parties and struck out the case.
NAN recalls that Mr Okim, while citing grounds for the filing of the motion, admitted that the court had appointed liquidators on the basis that his client had been unable to pay its arbitral award debt.
The lawyer stated that the company “has paid the debt arbitral award to the petitioner in this matter,” and argued that there is now a need to stay execution of the court’s orders or discharge the orders made on 3 December.
He further stated that his client had filed an appeal and that continued execution of the trial court’s orders might foist a fait accompli (irreversible accomplished fact) on the pending appeal.
The applicant also undertook to provide security for costs.
Mr Okim, therefore, sought “an order staying execution of the court’s order made on Wednesday, 3 December 2025, pending the hearing and determination of the appeal filed against the orders in this petition.
“An order vacating or discharging the orders appointing liquidators for the applicant made on 3 December 2025.”
The Head of Litigation and Insurance for Dantata & Sawoe, John Dalam, in the affidavit attached to the motion, stated that several credit transfers were made to Zutari Consulting to support the company’s claim of full payment.
“The debit alerts showing the payments of the arbitral award sum are attached here as Exhibit D2 series,” he added.
Mr Dalam stressed that further execution of the liquidation order would cause irreparable harm to the company and that it would be in the interest of justice for the court to grant a stay of execution.
The $1.4 million project debt 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 the subcontract work in Lekki, Lagos.
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About Dantata & Sawoe
Dantata & Sawoe was co-founded in 1976 by Abdulkadir Dantata, who died at 66 in February 2012.
Mr Dantata was an heir of the Dantata business dynasty, a Nigerian famous family of wealthy entrepreneurs from Kano State. The African richest man, Aliko Dangote, is also part of the family.
The company is known for its work on roads, highways, airstrips, flyovers, irrigation & drainage system, airports, power plants and other infrastructure projects across Nigeria.
(NAN)
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