• 29-year
• Mobile Nigeria
• Supreme court judgement

SUPREME COURT ENDS 29-YEAR LEGAL BATTLE, VOIDS ₦1.4BN COMPENSATION CLAIM AGAINST MOBILE

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  Caroline Ameh / 4 days
• 0
• 2 min read

The Supreme Court has brought to a close a 29-year legal dispute after dismissing an appeal seeking to revive a ₦1.4 billion compensation claim against Mobil Producing Nigeria Unlimited over alleged community land acquisition in Akwa Ibom State. In a unanimous judgment delivered on Thursday, the apex court upheld the decision of the Court of Appeal, Calabar Division, which had nullified an earlier judgment of the Federal High Court on the grounds of lack of jurisdiction. The Supreme Court held that the Federal High Court lacked the constitutional authority to entertain disputes relating to land ownership, compulsory acquisition, and compensation for unexhausted improvements. It ruled that such matters fall exclusively within the jurisdiction of State High Courts, as provided under the Land Use Act. The case originated in 1997 when His Royal Highness, Obong David Edu, alongside 132 others, instituted an action 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 Akwa Ibom State Government. They sought compensation on behalf of themselves and the Ekid people of Eket and Esit Eket Local Government Areas, alleging that their community land was compulsorily acquired by the state government. The claimants demanded ₦379,988,000 as compensation, with interest from July 30, 1997, for the alleged acquisition and unexhausted improvements on the land. In March 2014, the Federal High Court ruled in favour of the claimants, awarding the full sum with interest at 10 per cent per annum from April 8, 1998, until liquidation. The judgment sum later accumulated to about ₦1.4 billion.Mobil, however, 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 ruling, holding that it lacked jurisdiction to hear the matter. The claimants subsequently appealed to the Supreme Court, but the apex court dismissed the appeal in its entirety, endorsing the submissions of Mobil’s counsel, Ituah Imhanze. The Supreme Court reaffirmed that claims arising from compulsory land acquisition and compensation for unexhausted improvements are matters strictly reserved for State High Courts. The judgment effectively restores the decision of the Court of Appeal and finally voids the ₦379.9 million award earlier granted by the Federal High Court, bringing the long-running dispute to an end.