Court throws out massive contract dispute targeting Nigerian oil corporation
Business

Court throws out massive contract dispute targeting Nigerian oil corporation

By Advocate | May 28, 2026 | 2 min read |

A Federal Capital Territory High Court has dismissed a $19.6 million contract claim against the Nigerian National Petroleum Company Limited. Justice Hamza Mu'azu delivered the ruling on Friday, May 22,…

A Federal Capital Territory High Court has dismissed a $19.6 million contract claim against the Nigerian National Petroleum Company Limited. Justice Hamza Mu'azu delivered the ruling on Friday, May 22, 2026.

Alternate Dimensions Ventures Limited had sued NNPCL seeking the massive sum as professional fees. The company claimed it was owed the money after the scope of their Direct Sale, Direct Purchase contract expanded during execution.

Patrick Peter represented Alternate Dimensions in court. He argued that NNPCL breached the agreement by expanding the contract without adjusting compensation.

NNPCL's counsel, Ituah Imhanze, disagreed sharply. He told the court that written contracts must be interpreted strictly according to their express terms.

Imhanze noted that parties cannot simply claim variations without proper documentation. "Where contract terms are clear and unambiguous, courts must not look beyond what's written," he argued.

According to him, there was no written evidence that both parties agreed to expand the contract's scope. Without such documentation, he insisted the claim would fail entirely.

Justice Mu'azu sided with NNPCL's position in his judgment. He found that the contract between both parties contained clear, unambiguous terms that couldn't be questioned.

The judge held that nothing presented in court proved the contract scope had actually been expanded. NNPCL had strictly complied with all original contract terms, he noted.

In dismissing the suit, Justice Mu'azu reinforced a fundamental principle in contract law. Written agreements cannot be expanded, amended, or changed through implication, conduct, or mere oral discussion.

Any valid amendment requires express agreement backed by clear evidence, the court ruled. The judgment protects NNPCL from a potentially crippling financial liability.

This ruling represents a significant legal victory for Nigeria's national oil company. It reaffirms how Nigerian courts interpret commercial contracts between major corporations.

The decision underscores the importance of proper documentation in business dealings. Companies seeking contract variations must ensure changes are properly documented and signed.

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