An Osun State High Court, led by Justice Ayo Oyebiyi, dismissed a $500 million lawsuit against the Osun State government regarding the alleged unlawful termination of the Ilesa Water project contract.
The suit was filed by Henan Water Conservancy Engineering Bureau Limited and Sagittarius Nigeria Limited, the contractors for the project, through their lawyer Kunle Adegoke (SAN). The case, numbered HOS/M.205/2021, claimed the state government wrongfully terminated the contract awarded in 2019.
The Osun State government initiated the Ilesa Water Supply and Sanitation Project in 2016, funded by a loan from the Islamic Development Bank.
Defense counsel Tijani Adekilekun from the Osun Ministry of Justice argued that the contract was supposed to be completed within 24 months from the date the project site was handed over to the contractors. However, he noted that the contractors failed to meet this deadline.
Adekilekun explained that delays persisted due to the contractors’ inability to provide an approved design, leading to a notice of termination, which was rescinded after intervention from former Governor Adegboyega Oyetola. He added that after an additional 12 months, the contractors still failed to deliver the approved design, prompting Governor Ademola Adeleke to officially terminate the contract on August 16, 2022.
Kola Adegoke (SAN) sought an injunction to prevent the Osun State government from re-awarding the contract to another contractor. In his ruling, Justice Oyebiyi dismissed both the application and the lawsuit, stating that the termination was valid and directing the government to award the contract to another qualified firm.
