Table of Contents
Introduction
In Nigeria, disputes between small contractors and state governments rarely end in favour of the contractor. Governments possess superior financial resources, institutional leverage, and the ability to delay disputes almost indefinitely. For many small businesses, challenging the government in court is viewed as an exercise in futility. This article examines one of the rare exceptions.
It tells the story of Rematon Services Limited, a small indigenous contracting firm that entered into a construction agreement with the Bayelsa State Government to build the Bayelsa State High Court Complex in Yenagoa. After completing the project, the company was denied full payment and forced to seek legal redress.
What followed was a prolonged legal battle that culminated in a decisive victory for the contractor. First at the High Court, and ultimately at the Court of Appeal, which affirmed the judgment against the state government. It is a clear example of an underdog successfully holding power to account through the courts.
The Gist of the Matter
Rematon Services Limited is not a multinational corporation, nor is it a politically connected conglomerate. It is a local contracting firm that entered into a construction agreement with the Bayelsa State Government to build the Bayelsa State High Court Complex in Yenagoa.
The project was a significant one, intended to house an essential arm of government and to serve as a permanent judicial infrastructure for the state.
As is common with government contracts, the work required substantial financial commitment from the contractor. Materials had to be sourced, workers employed, and the project executed in line with specifications set by the state. According to the undisputed facts presented before the courts, Rematon Services carried out and completed the contract as agreed. However, problems arose after completion.
Despite fulfilling its contractual obligations, Rematon Services was not paid the full amount due under the contract. Repeated demands for payment failed to yield results. The outstanding balance remained unpaid, and the company was left bearing the financial burden of a project delivered in good faith to the state.
For a small contractor, such a situation can be crippling. Government contracts often consume a significant portion of a company’s working capital. Non-payment not only threatens profitability but can jeopardize the survival of the business itself.
Faced with this reality, Rematon Services made a decision many consider unwise or unrealistic: it chose to challenge the Bayelsa State Government in court. The company instituted an action at the Bayelsa State High Court, seeking to recover the outstanding contractual sum.
The case was not merely about money; it was about whether a small private entity could compel a state government to honour its word through the judicial process.
What the Trial Court Held
The dispute between Rematon Services Limited and the Bayelsa State Government was heard at the Bayelsa State High Court, where the contractor sought judicial intervention to recover sums owed for the construction of the Bayelsa State High Court Complex in Yenagoa.
The existence of a valid construction contract between the parties was not in dispute. It was also not disputed that Rematon Services Limited executed the project awarded to it by the state government. The central issue before the court was whether the contractor was entitled to receive the outstanding balance claimed under the contract, and whether the Bayelsa State Government had any lawful justification for withholding payment.
After considering the evidence placed before it, the High Court ruled in favour of Rematon Services Limited. The court held that the contractor had established its claim and that the Bayelsa State Government had failed to discharge its obligation to pay the outstanding sum due for the project.
Accordingly, the court entered judgment against the Bayelsa State Government and ordered it to pay Rematon Services Limited the judgment sum, which was put at over ₦1 billion.
The Decision of the Court of Appeal
Dissatisfied with the decision, the Bayelsa State Government appealed to the Court of Appeal, Port Harcourt Division. The appeal was registered as Appeal No. CA/PH/100/2021, and its effect was to suspend enforcement of the High Court judgment pending the determination of the appeal.
On 26 August 2024, the Court of Appeal delivered its judgment. The appellate court dismissed the appeal in its entirety and affirmed the decision of the Bayelsa State High Court, thereby confirming the contractor’s entitlement to the judgment sum.
By upholding the trial court’s judgment, the Court of Appeal reaffirmed the principle that a state government, having entered into a valid construction contract, is legally bound by its terms and cannot refuse payment without lawful justification. The appellate Court’s decision effectively brought the substantive dispute to a close, leaving the Bayelsa State Government under an obligation to satisfy the judgment debt. Unless an appeal is further made to the Supreme Court.
Conclusion
The victory of Rematon Services Limited over the Bayelsa State Government is significant not because it is common, but because it is not. In a system where power often shields itself from accountability, this case stands as a quiet but powerful reminder that the law can still function as an equalizer.
This was not a story of political leverage or public pressure. It was not resolved through backroom negotiations or administrative concessions. It was resolved through the courts, through persistence, and through a refusal to accept injustice as inevitable.
For small contractors and businesses across Nigeria, the case carries an important lesson: while the path to justice may be long and demanding, it is not entirely closed. Governments may be powerful, but they are not above the law. Contracts, once validly entered into, are not optional promises.
Underdog stories rarely change the world overnight. But they do something equally important, they challenge the belief that resistance is pointless. And in doing so, they keep alive the idea that justice, though delayed and imperfect, is still possible.
Written by Oladeji Ibukunoluwa
