The Federal Capital Territory High Court in Abuja has dismissed a $19.6 million lawsuit filed against the Nigerian National Petroleum Company Limited (NNPC Ltd), ruling that the claim was without merit.

Delivering judgment, the court held that the claimant failed to establish sufficient grounds to support its demand for the disputed sum, thereby resolving the matter in favour of NNPC Ltd.

The suit arose from a contractual dispute over professional fees allegedly linked to a Direct Sale, Direct Purchase (DSDP) arrangement, which the claimant claimed had been expanded through oral agreements.

However, the court ruled that the terms of a written contract remain binding on all parties and cannot be altered or expanded through verbal understanding or conduct without formal documentation.

In its decision, the court reaffirmed the legal principle of sanctity of contract, stressing that any amendment to a written agreement must be clearly documented and mutually agreed upon.

With the ruling, NNPC Ltd is discharged from liability in the $19.6 million claim, bringing the legal dispute to an end.