N2bn Contract Dispute: Engineering Firm Threatens Lekki Port Over Alleges Wrongful Termination

A major contractual dispute has erupted between Lekki Port LFTZ Enterprise Limited and Ajirit Engineering Logistics Limited, with the engineering firm alleging that the port operator wrongfully terminated a dredging and reclamation contract, exposing itself to claims that could exceed N2 billion.

Ajirit Engineering Logistics Limited in a statement issued on Monday through its solicitors, Strict Attorneys, said it entered into a Service Level Agreement with Lekki Port on March 28, 2025, for the dredging and reclamation of approximately one million cubic metres of sand within the Lekki Port Phase 2 development area.

According to the company, it committed significant financial, technical and human resources to the project and had already completed substantial portions of the work before the contract was terminated.

Ajirit claimed that between April and May 2025, it deployed multiple excavators and excavated about 75,000 cubic metres of material, achieving roughly 90 per cent completion of access channel dredging. Adding that it delivered more than 80 pipeline units to the site and installed approximately 840 metres of pipeline infrastructure, reaching about 80 per cent completion.

The company further disclosed that a Cutter Suction Dredger was mobilised and deployed to the project site on May 5, 2025, following inspections, approvals and test runs conducted in the presence of Lekki Port officials.

However, Ajirit said operations encountered difficult marine conditions, including severe tidal forces that affected equipment stability. The firm maintained that it had commenced recovery and remediation measures and remained prepared to continue work when Lekki Port allegedly terminated the contract and denied it access to complete the project.

The company argued that the termination amounted to a prevention of performance, a legal principle under which a contracting party cannot obstruct performance and subsequently rely on that obstruction as grounds for termination or avoidance of liability.

Ajirit said it has incurred substantial expenses relating to equipment mobilisation, dredger deployment, engineering works, personnel and operational logistics. It estimated its current claim at about N1.26 billion, while warning that total claims could exceed N2 billion if the matter proceeds to litigation.

However, despite the dispute, the firm expressed willingness to pursue an amicable settlement but stated that it remains prepared to seek legal remedies before the Lagos State High Court or through arbitration and mediation proceedings if negotiations fail.

All efforts in getting the reactions to the allegations were unfruitful, as messages and calls sent via +86159….4854 and 0708….2693, to Mr. Zong Williams, the Head of Technical department of Lekki Deep Seaport were unanswered and unreplied as at the time of filing this report.

Lekki Port Faces N2bn Contract Dispute as Engineering Firm Alleges Unlawful Termination

A major contractual dispute has erupted between Ajirit Engineering Logistics Limited and Lekki Port LFTZ Enterprise Limited, with the engineering firm claiming losses exceeding N2 billion following the termination of a dredging and reclamation contract at the port’s Phase 2 expansion project.

Ajirit in a statement issued on Monday through its solicitors, Strict Attorneys, alleged that Lekki Port prematurely terminated a Service Level Agreement signed on March 28, 2025, for the dredging and reclamation of approximately one million cubic metres of sand within the port area.

The company further claimed that it had committed significant financial, technical and human resources to the project and had already completed substantial aspects of the contract before the termination occurred.

Ajirit alleged that it deployed multiple excavators between April and May 2025, excavating about 75,000 cubic metres of material and achieving approximately 90 per cent completion of access channel dredging.

The company also claimed to have delivered more than 80 pipeline units to the site and installed about 840 metres of pipelines, representing 80 per cent completion of pipeline infrastructure.

The firm further stated that a Cutter Suction Dredger was mobilised and deployed to the project site on May 5, 2025, with equipment inspections and test runs conducted in the presence of Lekki Port officials.

However, Ajirit said operations encountered challenging marine conditions, including severe tidal forces that affected equipment stability. While maintained that it initiated recovery and technical remediation efforts and remained ready to complete the project.

The company alleged that despite these efforts, Lekki Port abruptly terminated the contract, denied access to the site and refused to allow continuation of the work, the action it described as a case of “prevention of performance” and argued that established legal principles entitle it to compensation for work already executed and expenses incurred.

The company disclosed that it is currently seeking about N1.26 billion in compensation, while total claims could exceed N2 billion if the matter proceeds to litigation.

Ajirit however said it remains open to an amicable resolution but is prepared to pursue legal remedies, including court action and arbitration, to recover its alleged losses.