Sponsored
Judiciary

JUST IN: Supreme Court Ends 29-Year Battle, Nullifies N1.4bn Award Against Mobil

Sponsored
Sponsored

The Supreme Court has dismissed an appeal challenging the jurisdictional decision of the Court of Appeal, Calabar, thereby striking out a N1.4 billion compensation suit filed against Mobil Producing Nigeria Unlimited over alleged acquisition of community land in Akwa Ibom State.

In a unanimous judgment delivered on Thursday, January 30, 2026, the apex court held that the Federal High Court lacked jurisdiction to entertain claims relating to land disputes and compensation arising from compulsory acquisition and unexhausted improvements.

It ruled that such matters fall squarely within the exclusive jurisdiction of State High Courts under the Land Use Act.

The appeal stemmed from a suit instituted in 1997 by His Royal Highness, Obong David Edu, and 132 others at the Federal High Court, Uyo Judicial Division.

The claimants sued Mobil Producing Nigeria Unlimited, now Seplat Energy Producing Nigeria Unlimited, the Nigerian National Petroleum Corporation (NNPC), and the Government of Akwa Ibom State.

They sought compensation on behalf of themselves and the Ekid people of Eket and Esit Eket Local Government Areas for community land allegedly compulsorily acquired by the state government.

They claimed the sum of N379,988,000, with interest from July 30, 1997, as compensation for the alleged acquisition, as well as for purported unexhausted improvements on the land.

In March 2014, the Federal High Court ruled in favour of the claimants, awarding the full sum of N379,988,000 with interest at 10 per cent per annum from April 8, 1998, until liquidation of the judgment debt.

Mobil challenged the decision at the Court of Appeal, Calabar Division.

In a unanimous judgment delivered on July 13, 2018, the appellate court allowed the appeal and set aside the Federal High Court’s judgment, holding that it lacked jurisdiction to adjudicate on land-related compensation claims.

Dissatisfied, the claimants further appealed to the Supreme Court.

However, the apex court upheld the submissions of Mobil’s counsel, Ituah Imhanze Esq of Kenna Partners, and dismissed the appeal in its entirety.

The court reaffirmed settled jurisprudence that claims for compensation arising from compulsory acquisition of land and unexhausted improvements are matters reserved for State High Courts, not the Federal High Court.

The Supreme Court’s ruling effectively restores the judgment of the Court of Appeal and nullifies the N379.9 million award earlier granted by the Federal High Court.

Dr. Okiemute Akpomudge of Albert Akpomudge, SAN & Co represented the NNPC, while J. Jerome Akpan Esq appeared for the Government of Akwa Ibom State.

The appellants were represented by Ekom Nwoko Esq of Kanu G. Agabi and Associates.

With the decision, the Supreme Court has brought to an end a protracted dispute that spanned nearly three decades and traversed three tiers of court, while reinforcing the constitutional and statutory limits of court jurisdiction in land and compensation matters.

Sponsored
Funsho Arogundade

Recent Posts

Lagos to London: How Air Peace Challenged My First Impressions

BY CHRISTY ANYANWU Travel often has a way of confronting our expectations. Sometimes, we set…

7 hours ago

Dangote Refinery: Domestic Crude Must Be Available And Commercially Viable

Dangote Petroleum Refinery and Petrochemicals has clarified its position following recent reports referencing data released…

7 hours ago

President Tinubu Approves Landmark Deep Offshore Investment Framework To Unlock Up To $50bn In New Investment

President Bola Ahmed Tinubu, GCFR, has approved a landmark reform that replaces project-by-project negotiations with…

10 hours ago

Ooni Celebrates Indimi’s Legacy, Unveils Plan To Establish Business School In His Honour

The Permanent Chairman of the Southern Nigerian Traditional Rulers Council (SNTRC), Arole Oodua Olofin Adimula…

12 hours ago

OYRTMA Moves To Save Lives, Replaces Stolen Manhole Covers With Concrete On Apata Road

The Oyo State Road Traffic Management Authority (OYRTMA) has commenced the replacement of stolen manhole…

13 hours ago

Tribute To Prof. Alfred Bandele Kasunmu, SAN: When A Giant Takes His Final Bow

BY 'KEMI PINHEIRO There are men whose passing is announced by the tolling of bells.…

16 hours ago
Sponsored