To Avert Liquidation, Dantata & Sawoe Clears $1.4 Million of Dangote’s Project Debt

Festus Akanbi

In a last-minute move to forestall liquidation, Dantata & Sawoe Construction Company Limited has reportedly paid in full a $1.4 million debt owed to Zutari Consulting Nigeria Limited, related to subcontract works at the Dangote Fertiliser Plant in Lekki, Lagos.

The full settlement, disclosed in a motion on notice filed before the Federal High Court, Abuja, on December 4, 2025, follows a court order that signalled the company’s imminent winding-up.

The development follows Justice Mohammed Umar’s earlier grant of Zutari Consulting’s request for the appointment of a liquidator, noting that Dantata & Sawoe had repeatedly failed to settle the debt despite being given ample opportunity.

The court, according to Nairametrics yesterday, had also approved the publication of a winding-up petition in two national newspapers, heightening pressure on the construction giant.

According to the company’s lawyer, I. Otim, Dantata & Sawoe has now fully discharged the arbitral award debt to the petitioner and has filed an appeal, warning that continued execution of the court’s liquidation orders could create an irreversible situation.

The company has also undertaken to provide security for costs and is seeking orders to stay execution of the December 3, 2025, court rulings and to vacate or discharge the liquidators’ appointment.

Affidavits filed by the Head of Litigation and Insurance, John Dalam, showed evidence of several credit transfers to Zutari Consulting, with debit alerts attached as Exhibit D2 series.

Dalam stressed that further execution of the liquidation order would inflict “irreparable harm” on the company and urged the court to grant a stay in the interest of justice.

Zutari Consulting, which specialises in engineering design, consulting, and supervision, had engaged Dantata & Sawoe in 2015 for subcontract works on the Dangote Fertilizer Plant.

Following a protracted payment dispute, the matter was referred to the International Chamber of Commerce in London, which issued a final arbitral award in Zutari’s favour on April 7, 2021.

The dispute saw repeated adjournments, with Dantata & Sawoe previously offering to pay 75% of the debt—a proposal rejected by Zutari Consulting.

After hearing both sides, the Federal High Court had concluded that the company’s failure to pay justified the appointment of Joseph Abiolu, FCA, as liquidator, in line with Sections 571(d), 572, and 573(1)(b) of the Companies and Allied Matters Act (CAMA) 2020.

With the full settlement now made, the court is expected to schedule hearings to determine whether liquidation proceedings will be stayed pending the appeal.

If successful, Dantata & Sawoe could temporarily halt the winding-up process as it awaits a final decision from the Court of Appeal, which is currently reviewing the matter.

The case highlights the high-stakes tensions in Nigeria’s construction and engineering sector, where significant debts and contractual disputes can quickly escalate to judicial intervention, potentially with severe implications for long-standing companies.