Tribunal Awards N19.4bn to Hanson Dredging Over Illegal Termination of Contract by SANEF
An arbitration tribunal in Lagos has ruled in favor of Hanson Dredging and Marine Service Ltd. (HDMS), ordering SANEF Creatives Ltd., a company owned by the Bankers’ Committee of the Central Bank of Nigeria, to pay N19.4 billion for unlawfully terminating a dredging and reclamation contract at the National Theatre (Lagos Creative Entertainment Centre).
The dispute arose in May 2022 when SANEF prematurely ended the contract despite HDMS having completed over 60% of the work. The tribunal, led by sole arbitrator Ayo Fanimokun, concluded the matter on December 30, 2024, finding that SANEF’s actions violated the terms of the contract.
HDMS had initiated the arbitration proceedings in 2023, challenging SANEF’s decision to terminate the contract, which was signed in November 2021. The company, represented by Senior Advocate of Nigeria (SAN) Dr. Charles Mekwunye, explained that several unforeseen challenges, such as the COVID-19 pandemic and delays from government agencies, hindered the project’s timely completion. However, instead of addressing these issues, SANEF insisted that the 36-week deadline had passed and terminated the contract.
Further complicating the issue, HDMS claimed that the Central Bank of Nigeria (CBN), under former Governor Godwin Emefiele, unlawfully debited N4.2 billion in advance payments from their account.
HDMS sought various reliefs from the tribunal, including a declaration that the termination was unlawful and a demand for N35 billion in damages. In its defense, SANEF, represented by lawyer Paul Usoro (SAN), argued that its decision was justified and made a counterclaim of N70 billion for alleged losses caused by HDMS’s actions.
