Dantata & Sawoe Construction Company Limited has rushed to settle a $1.4 million debt owed to Zutari Consulting Nigeria Ltd in an effort to stop ongoing liquidation proceedings ordered by the Federal High Court in Abuja.

The construction firm confirmed in a motion filed on December 4, 2025, that it has fully paid the sum covered in a settlement agreement related to the $1,257,592.83 debt arising from subcontract engineering work at the Dangote Fertilizer Plant project in Lekki, Lagos. This disclosure comes just one day after the court approved the appointment of a liquidator following repeated delays by Dantata & Sawoe in paying the arbitral award.

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The company had been under mounting legal pressure for months, with the court earlier authorising the publication of a winding-up petition in national newspapers. Zutari Consulting, which handled design and engineering supervision for the fertilizer plant project, initiated the enforcement process after the company failed to honour payment obligations.

In its latest filing, Dantata & Sawoe’s counsel, I. Otim, acknowledged that the court appointed liquidators because the arbitral award remained unpaid. The lawyer, however, argued that the debt has now been fully settled and urged the court to halt execution of the liquidation orders issued on December 3, 2025. He further noted that the company has already filed an appeal and warned that carrying out the liquidation order could create an irreversible situation while the appeal is pending. The company also pledged to provide security for costs.

Supporting the application, the firm’s Head of Litigation and Insurance, John Dalam, submitted an affidavit showing multiple bank transfers made to Zutari Consulting as proof of complete payment. He argued that continued enforcement of the liquidation directive would cause serious and irreversible damage to the company.

Attention now shifts back to the trial court, which is expected to schedule a hearing where both parties will present arguments on whether the liquidation order should be lifted or suspended. If the court grants Dantata & Sawoe’s request, the winding-up process may be paused until the Appeal Court resolves the case.

The dispute dates back to an engineering subcontract awarded in 2015. After completing its work, Zutari Consulting claimed the construction company owed it $1,257,592.83, ZAR 2,136,623.39, and £4,364.38. When the parties failed to resolve the disagreement, the matter was taken to arbitration under the International Chamber of Commerce in London, which issued an award in April 2021 holding Dantata & Sawoe liable for the outstanding payments.

Despite several extensions granted by the court to encourage settlement, the debt remained unresolved for years. Zutari Consulting maintained that Dantata & Sawoe repeatedly failed to honour payment commitments, rejecting a proposal by the company to pay only 75% of the arrears.

During the last court session, the judge noted that the matter had been adjourned three times to allow Dantata & Sawoe settle the debt but that the company continued to present excuses. The court then approved the appointment of chartered accountant Joseph Abiolu as liquidator under Sections 571(d), 572, and 573(1)(b) of the Companies and Allied Matters Act (CAMA) 2020.

The matter is scheduled to return to court on February 18, 2026, for the presentation of the liquidator’s report—unless the judge decides to stay or set aside the previous orders based on the company’s latest claims of full payment.