Abuja Court Nullifies 177% Annual Fee In Halkin E&P-Eunisell Suit

A High Court of the Federal Capital Territory (FCT), Abuja, has ruled in favour of Halkin Exploration and Production Limited (Halkin E&P) in its contractual dispute with Eunisell Limited, declaring a provision imposing a 177 per cent annual default fee null and void.
In a Certified True Copy (CTC) of the judgment made available to newsmen, the trial judge, Justice Suleiman Belgore, held that Clause 10.4 of the service agreement between the two companies, dated 20 January 2022, was unenforceable.
The disputed clause required Halkin E&P to pay a late-payment charge of 0.5 per cent per day on outstanding payments, translating to approximately 177 per cent annually on a compound-interest ...