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Ibadan Ring Road: Court Restrains Oyo Govt, Firm From Meddling With Contract

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A Federal Capital Territory, FCT, High Court, in Abuja, has restrained the Oyo State government, Craneburg Construction Co. Ltd., and two others from meddling with a contract awarded ENL Consortium Ltd., pending the hearing and determination of a motion on notice in the suit.

The subject matter in the suit is the construction of the 32-Kilometre East End Wing of the 107-Kilometre proposed Ibadan Ring Road (the Ibadan Circular Road), particularly, as described in the contract document dated August 25, 2017.

The project was awarded as a Build, Operate and Transfer, BOT, contract for the construction of the Ibadan outer Ring Road, measuring 32 kilometres.

The trial judge, Justice Enobie Obanor, gave the ruling after listening to the plaintiff’s counsel on a motion ex-parte in suit FCT/HC/M/8903.

Other defendants in the suit are Fadi Khalil and Mohammed Abdul.

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Counsel to the plaintiff, ENL Consortium Ltd, in the state of claim, had argued that the entire project was to be contractor financed with a period provided in the contract for the contractor to recoup his expenditure and make an appropriate profit.

The counsel said: “In the course of executing the contract with finances sourced by the contractor, there was a change of administration in Oyo State from the Governorship of Chief Abiola Ajimobi of the All Progressives Congress, APC, whose government awarded the contract, to that of Governor Seyi Makinde of the Peoples Democratic Party, PDP, and the latter did not hide the fact that his administration did not want the plaintiff to conclude and benefit from the contract.

“Consequently, by some contrivances set out in the statement of claim, the Oyo State Government purported to revoke the contract and re-award same to Craneburg Construction Co Ltd, an Abuja-based company, even though the contract was still subsisting and not resolved through the arbitration clause in the contract, which the Oyo State Government is yet to take advantage of.

For now, the reliefs sought are against the Abuja company that has interfered in the contract between the plaintiff and the 4th defendant.

In a short ruling, Justice Obanor said: “The court, having carefully gone through the reliefs sought in notion No. M/8903/ 2022 and has also gone through the affidavit evidence and seven exhibits annexed thereto as well as the written submission of counsel, the court is satisfied that the application is meritorious and it is, hereby, granted and order made as prayed pending the hearing and determination of the motion on notice.”

The court adjourned till July 15, 2022, for a hearing of the motion on notice.

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