Dantata & Sawoe Construction Company Ltd has successfully avoided being liquidated by paying a long-outstanding debt tied to a Dangote project, according to recent court developments.
The Federal High Court in Abuja had moved to wind up the company after it failed to settle a $1.4 million debt owed to Zutari Consulting Nigeria Ltd, connected to work on the Dangote Fertilizer Plant in Lekki. However, fresh filings and evidence of payment led the court to strike out the liquidation process.
Dantata & Sawoe’s legal team informed the court that the full amount due has now been paid. In a motion before Justice Mohammed Umar, the company’s lawyer explained that they had cleared the $1.4 million arbitral award previously ordered in favour of Zutari Consulting.
In the motion papers, counsel sought relief from the court, urging officials to “stay execution of the court’s order made on Wednesday, December 3, 2025, pending the hearing and determination of the appeal filed against the orders in this petition.” They also requested “an order vacating or discharging the orders appointing liquidators for the applicant made on December 3, 2025.”
The payment came after months of legal wrangling. Earlier this month, the court granted Zutari Consulting’s request to have a liquidator appointed for the construction firm due to repeated delays in settling the debt. The debt originally stemmed from a 2015 subcontract between Dantata & Sawoe and Zutari Consulting, under which Zutari had carried out engineering design and supervision work on the Dangote Fertilizer Plant.
The dispute escalated when Dantata & Sawoe allegedly failed to complete payments owed for that subcontract work. Zutari took the matter to arbitration in London, where a tribunal ruled in its favour, awarding more than $1.2 million in outstanding funds.
After the arbitration award, Zutari moved to enforce the judgment in Nigeria, prompting the filing of a winding-up petition that culminated in the court’s decision to appoint a liquidator in early December.
In the latest court filings, Dantata & Sawoe’s Head of Litigation and Insurance provided proof of payment through multiple credit transfers made to Zutari Consulting, hoping to convince the judge that the debt issue has been resolved.
Lawyers for the construction company stressed that leaving the liquidation order in place, despite the payment being completed, would cause “irreparable harm” and go against the interests of justice, particularly because there is an appeal already in process.
In response to the developments, the court agreed to strike out the earlier order that would have placed Dantata & Sawoe into liquidation. This means the company will continue to operate while its appeal proceeds and the dispute is fully settled in court.
The resolution of this debt is significant for Nigeria’s construction sector, reinforcing confidence that major domestic contractors can manage large project liabilities and avoid collapse. Large construction firms are essential for infrastructure growth, and stable operations support employment, project continuity, and investor trust in Nigeria’s broader economic recovery.
