A metering firm, Ziklagsis Network Ltd. has filed a Lawsuit against the Federal Government of Nigeria, the Federal Ministry of Power, and four other parties over a contentious ₦39.1 billion metering contract. The case, filed at the Federal High Court in Abuja under the filing number FHC/ABJ/CS/576/2024, cites additional names as defendants such as the Minister of Power, the Debt Management Office, Providus Bank Ltd, and De-Haryor Global Services Ltd. Ziklagsis claims that the defendants interfered with a metering project for which it obtained a loan, repayable over a seven-year period, and is requesting ₦1.1 billion in damages and legal costs.
According to the company, the Federal Ministry of Power and the federal government did not have the right to “tamper with, confiscate, seize, withhold, divert, convert, or appropriate” the N39.1 billion allotted for the supply of electric meters in Nigeria, as stated in articles 3, 4, 5, 6, 10, and 18(i), (ii), (iii), 24 and 29(ii) of the Judgement Compromise Agreement (JCA) that the company entered into with the ministry on August 28, 2017. On its part, Ziklagsis blames the COVID-19 pandemic’s disruptions for its incapacity to carry out the contract.
Government response and De-Haryor’s rebuttal.
It further claims that by impeding its attempts to comply with the provisions of the Revalidated Tripartite Agreement, as amended by Addendum No. 2, the federal government and the Ministry of Power have behaved in bad faith. Through its attorney, Chief Wole Olanipekun, SAN, Ziklagsis also argues that the defendants thwarted efforts to carry out the project by refusing to transfer the fund, even after Ziklagsis was given the contract and the president approved its compliance. Responding to the situation, the Minister of Power and the federal government have refuted these accusations, claiming that their actions were compliant with the agreement.
De-Haryor Global Services Ltd, a power installation business and an interested party in the case has also filed a counter-affidavit. De-Haryor, who was represented by attorney Marcus Abu, described the complaint as “brought in bad faith” and asked the court to denounce Ziklagsis’s conduct. According to De-Haryor, Ziklagsis did not fulfill its responsibilities under the JCA, which included providing prepaid meters to lessen the impact of estimated billing on Nigerians. However, he pointed out that the company did not allow Nigerians to benefit from the project.
Counterclaims and allegations of non-performance.
The firm further stated that Ziklagsis has not produced any documentation to show what it has done in accordance with its Exhibit ZNL 5 Agreement, while De-Haryor claimed to have essentially fulfilled its contract with Ziklagsis. It mentioned Ziklagsis’ failure to invest in the project despite having a two-year JCA embargo on supplying meters. Meanwhile, De-Haryor asserted that it had successfully completed the first phase of the Nigerian Army barracks metering project. Marcus Abu, De-Haryor’s attorney, contended that Ziklagsis had essentially broken the contract.
He requested the court to declare the agreement dissolved, citing that Ziklagsis utilized COVID-19 as an excuse while doing nothing even after the Epidemic subsided. Adesegun Ajibola (SAN), the attorney for Providus Bank, also claimed in a counter-affidavit that portions of Ziklagsis’ affidavit supporting the original summons were false and full of half-truths to deceive the court. Providus further stated that the company was merely a fixed deposit account customer seeking a higher Interest Rate on the deposit than Polaris Bank offered, and that Providus was unaware of the terms of the agreement it had reached with the federal government.
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Controversy surrounding Ziklagsis Network Ltd.’s lawsuit against the Federal Government, the Federal Ministry of Power, and four other defendants has brought attention to problems with contract management and accountability in Nigeria’s power industry. More general concerns about efficiency and transparency in public-private partnerships have also been brought to light. The case which is currently before Justice James Omotosho at the Federal High Court in Abuja, has been adjourned until 4th of February, 2025, for further hearing. In what is expected to be a high-stakes judicial battle with ramifications for the Nigerian power sector, the adjournment gives all parties a chance to prepare their cases.