JUST IN: Court Dismisses $19.6 Million Lawsuit Against NNPC, Claim Lacks Merit

A Federal Capital Territory High Court has thrown out a $19.6 million lawsuit filed against the Nigerian National Petroleum Company Limited, NNPC Ltd, describing the claim as lacking merit.

The judgment, delivered on Thursday, ended a legal battle linked to a disputed contract under the Direct Sale, Direct Purchase, DSDP, arrangement.

The claimant had approached the court seeking payment of professional fees allegedly owed by the national oil company. The suit was based on claims that the initial agreement between the parties had gone beyond the terms contained in the written contract.

According to court proceedings, the claimant argued that the contract was later expanded through oral discussions, mutual conduct and unofficial understandings between the parties.

However, the court rejected the argument and ruled that there was no sufficient evidence to support the demand for the $19.6 million payment.

The judge maintained that parties involved in a written agreement are bound strictly by the terms contained in the document. The court further held that verbal arrangements or unofficial understandings cannot override a properly executed contract without clear documentation and consent from all parties involved.

The ruling reaffirmed the legal principle known as the sanctity of contract, stressing that agreements must remain within the terms originally signed by the parties except where proper amendments are formally made.

With the decision, NNPC Ltd was discharged from any financial liability in the matter, bringing the dispute to a close.