Distributor Sues Dangote Cement and Access Bank over Bank Guarantee

A distributor with Dangote Cement – Blueberry Integrated Concept Limited (BICL) has instituted proceedings against Access Bank and Dangote before an Abuja High Court, demanding N250 million damages.

Before their relationship turned sour, Blueberry said it was appointed as one of Dangote Cement distributors.

Court processes reveal that Blueberry obtained a N40 million Bank Guarantee (BG) from Access Bank which was given to Dangote to finance a contract for the supply of 90, 000 bags of 50 kg Dangote Cement.

The plaintiff stated that the transaction was not completed yet Dangote held on to the bank guarantee. This, the plaintiff said made it impossible to access other facilities from the bank.

In a 29-paragraphed statement of claim, the Chief Executive Officer of Blueberry, Mr Sanusi Maikurdi Garba, alleged that there was a connivance between Access Bank and Dangote to frustrate his company from enjoying the bank guarantee issued in its favour by Access Bank.

The plaintiff further stated that Dangote deliberately refused to surrender the original bank guarantee, thereby making it impossible to obtain a loan and overdraft from the bank despite the exorbitant sum it paid to the bank before the said guarantee was issued.

He explained that his company spent a lot of money before Dangote approved its request to be appointed a distributor only for Dangote to turn around to frustrate his company from doing business.

The plaintiff said that Access Bank fully charged his company for the guarantee even though it was not able to enjoy the facility.

He also alleged that the bank also failed to amend the value of the guarantee as requested.

It was further alleged that Blueberry instructed the bank to pay its workers' salaries. While the total sum of the salaries was deducted from plaintiff's account it was alleged that only two employees out of 18 were paid by the Bank.

Meanwhile, the case has been fixed for May 6, by Justice Baba Useni.