Nigergate Limited V. Niger State Government & Ors. (2004)

LawGlobal-Hub Lead Judgment Report

BULKACHUWA, J.C.A.

The appellant as plaintiff before the Minna High Court claimed for the following reliefs against the respondents by way of originating summons:

“I. A declaration that the purported termination of the contract between the 1st defendant and the plaintiff is ultra vires the agreement dated 22nd June, 2001 and therefore arbitrary, oppressive, illegal, wrongful, null and void and of no effect.

II. A declaration that the contract between the 1st defendant and the plaintiff dated 22nd June, 2001 is valid and subsisting and can only be discharged by effluxion of time and/or in accordance with the terms of the agreement.

III. An order of mandatory injunction compelling the 1st defendant, its agent, servants and privies to abide by the contract in accordance with the terms of the agreement dated 22nd June, 2001.

IV. An order of mandatory injunction compelling the 1st and 2nd defendants, their servants, agents and privies to restore the plaintiff to the control and management of the control posts at Jebba, Mokwa, Suleja and Wuse as specified in the agreement dated 22nd June, 2001.

V. An order of mandatory injunction directing the 4th defendant, its servants, agents, and privies to vacate and deliver up to the plaintiff the management and control of the control posts at Jebba, Mokwa, Suleja and Wuse as contained in the agreement and to render account to the plaintiff for its unlawful management of the control posts from 2nd May, 2002 until surrender of control and management of the post to plaintiff.

VI. An order restoring the 1st defendant and the plaintiff to the status quo before 30th April, 2002 enabling the plaintiff to continue to discharge its obligations under the contract until the contract is determined by effluxion of time in January, 2005.

VII. An order of specific enforcement of the contract between the 1st defendant and the plaintiff as contained in the agreement dated 22nd June, 2001.

VIII. A declaration that the plaintiff is entitled to the discharge of its obligations under the agreement until same is validly determined by effluxion of time and/or in accordance with the terms of the agreement.

IX. A declaration that the purported award of a new contract to the 4th defendant or to any other person by whatever name called or known for the management and control of the livestock and produce control posts at Mokwa, Suleja, Jebba, and Wuse in the circumstance of the case is arbitrary, oppressive, unlawful, wrongful, illegal and an exercise in executive recklessness and anti democratic. ”

The 1st respondent, The Niger State Government in an agreement dated 22nd June, 2001, appointed the appellant Nigergate Ltd., a limited liability company to among other responsibilities, collect taxes and levies on livestock’s grains and other goods passing through the state at various control posts. The appellant was required under the agreement to remit the sum of N6,000,000.00 monthly to the respondents subject to periodic review.

The 1st respondent by a letter dated 20th February, 2002 reviewed the amount to be remitted by the appellant under the agreement from the sum of N6,000,000.00 to N10,000,000.00 with effect April, 2002.

The appellant in its letter of 4th March, 2002, protested the review and argued that it was in breach of the agreement as it was done without negotiations, and went on to state several reasons why the new rate could not be remitted by them. Upon receipt of the letter from the appellants, the 2nd respondent responded by terminating the contract agreement vide a letter dated 12th April, 2002. This letter did not state any reason for the termination aside from reference to appellant’s letter of 4th March, 2002.