A major contractual dispute has erupted between Lekki Port LFTZ Enterprise Limited and Ajirit Engineering Logistics Limited, with the engineering firm alleging that the port operator wrongfully terminated a dredging and reclamation contract, exposing itself to claims that could exceed N2 billion.
Ajirit Engineering Logistics Limited in a statement issued on Monday through its solicitors, Strict Attorneys, said it entered into a Service Level Agreement with Lekki Port on March 28, 2025, for the dredging and reclamation of approximately one million cubic metres of sand within the Lekki Port Phase 2 development area.
According to the company, it committed significant financial, technical and human resources to the project and had already completed substantial portions of the work before the contract was terminated.
Ajirit claimed that between April and May 2025, it deployed multiple excavators and excavated about 75,000 cubic metres of material, achieving roughly 90 per cent completion of access channel dredging. Adding that it delivered more than 80 pipeline units to the site and installed approximately 840 metres of pipeline infrastructure, reaching about 80 per cent completion.
The company further disclosed that a Cutter Suction Dredger was mobilised and deployed to the project site on May 5, 2025, following inspections, approvals and test runs conducted in the presence of Lekki Port officials.
However, Ajirit said operations encountered difficult marine conditions, including severe tidal forces that affected equipment stability. The firm maintained that it had commenced recovery and remediation measures and remained prepared to continue work when Lekki Port allegedly terminated the contract and denied it access to complete the project.
The company argued that the termination amounted to a prevention of performance, a legal principle under which a contracting party cannot obstruct performance and subsequently rely on that obstruction as grounds for termination or avoidance of liability.
Ajirit said it has incurred substantial expenses relating to equipment mobilisation, dredger deployment, engineering works, personnel and operational logistics. It estimated its current claim at about N1.26 billion, while warning that total claims could exceed N2 billion if the matter proceeds to litigation.
However, despite the dispute, the firm expressed willingness to pursue an amicable settlement but stated that it remains prepared to seek legal remedies before the Lagos State High Court or through arbitration and mediation proceedings if negotiations fail.