Court orders Dangote to pay N2.7bn damages to mining firm

A Federal High Court sitting in Lokoja has ordered the Dangote Group and three of its subsidiaries to pay N2,697,125,000 to a mining firm, Quest Two Enterprises Ltd and its Chief Executive Officer, Sir Paul Akanegbu.

The order resulted from a suit brought by the firm against Dangote in 2014 following a dispute, claiming various sums for breach of contract, special damages, and specific performance of Dangote’s obligations contained in two memoranda of understanding dated 2/1/2014 and 10/2/2014.

In his judgment, the trial judge Justice P. M. Ayua of the Federal High Court, Lokoja held that the Dangote General Manager, Mr. Victor Mohan, who was also the sole witness admitted under crossexamination that his employers, Dangote Group, shut down operations of the company by dismantling power lines belonging to the company and disrupting their operations.

Despite agreeing to pay compensations for these acts to the plaintiffs, the judge said the defendants failed to live up to the terms of the agreement.

Dangote in a counter claim for N3 billion, had stated that the action of the plaintiffs in the construction and erection of electricity poles and other structures amounted to trespass on their mining lease area.

The court in its judgment however dismissed Dangote’s counter-claim.

Meanwhile, the Dangote group has filed a Notice of Appeal at the Court of Appeal, Abuja Division.