Nigergate Limited v. Niger State Government & 2 Ors

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Facts:

The plaintiff/appellant, Nigergate Limited entered into a renewable agreement dated 22nd June 2001 for a term of five years with the 1st defendant/respondent, Niger State Government to collect taxes and levies on livestock, grains and goods passing through various control posts at Jebba, Mokwa, Suleja and Wuse. The appellant was required under the agreement to remit the sum of 6,000,000.00 (Six million naira) monthly to the 1st respondent subject to periodic review of the agreement after negotiation. Either party could terminate upon giving six months’ notice.  

By a letter dated 20th February 2002 the 1strespondent unilaterally reviewed the amount to be remitted to 10,000,000.00 (Ten million naira). The appellant protested the upward review, as it was a breach of agreement. The respondent responded wrote to terminate the contract without giving the requisite 6 (six) months’ notice. 

The appellant commenced the action by originating summons seeking, inter alia, a declaration that the contract is valid and subsisting and can only be discharged by the effluxion of time and/or in accordance with the terms of the agreement.

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