The Supreme Court on Thursday brought an end to a 29-year legal battle by striking out a ₦1.4 billion compensation award against Mobil Producing Nigeria Unlimited, ruling that the Federal High Court lacked jurisdiction to entertain the case.
In a unanimous judgement delivered by a panel of justices led by Chioma Nwosu-Iheme, the apex court upheld the decision of the Court of Appeal, Calabar Division, which had nullified the earlier judgement on jurisdictional grounds.
Federal High Court lacked jurisdiction
The Supreme Court held that claims arising from land disputes, compulsory acquisition and compensation for unexhausted improvements fall exclusively within the jurisdiction of state High Courts, as provided under the Land Use Act, 1978.
Other members of the panel were Mohammed Garba, Tijjani Abubakar and Habeeb Abiru.
The legal dispute began in 1997 when a traditional ruler, Obong David Edu, alongside 132 others, sued Mobil Producing Nigeria Limited (now Seplat Energy Producing Nigeria Limited), the Nigerian National Petroleum Corporation (NNPCL) and the Akwa Ibom State Government at the Federal High Court in Uyo.
The claimants sought compensation for community land allegedly acquired by the Akwa Ibom State Government on behalf of Mobil for oil operations in Eket and Esit Eket Local Government Areas.
They demanded ₦379,988,000, alongside interest from July 30, 1997, including compensation for unexhausted improvements on the land.
Appeal court ruling upheld
In March 2014, the Federal High Court ruled in favour of the claimants, awarding the full sum with 10 per cent annual interest from April 8, 1998, until full liquidation of the judgement debt.
Mobil challenged the ruling at the Court of Appeal in Calabar. On July 13, 2018, the appellate court overturned the judgement, holding that the Federal High Court lacked the constitutional authority to hear land-related compensation claims.
Dissatisfied, the claimants escalated the matter to the Supreme Court.
In Thursday’s ruling, the apex court agreed with Mobil’s submissions, presented by its counsel, Ituah Imhanze of Kenna Partners, and dismissed the appeal in its entirety.
Legal clarity on land compensation
The Supreme Court reaffirmed that Sections 39, 41 and 42 of the Land Use Act vest exclusive jurisdiction over land disputes and compensation matters in state High Courts.
Counsel to the NNPCL, Okiemute Akpomudge of Albert Akpomudge, SAN & Co, and J. Jerome Akpan, who represented the Akwa Ibom State Government, aligned with Mobil’s arguments.
The appellants were represented by Ekom Nwoko of Kanu G. Agabi & Associates.
The ruling restores the decision of the Court of Appeal and voids the ₦379.9 million award earlier granted by the Federal High Court, including accumulated interest that had pushed the claim to ₦1.4 billion.
The judgement brings final closure to a nearly three-decade litigation that traversed three tiers of court, reinforcing a fundamental principle of Nigerian law: jurisdiction is the foundation of adjudication, and any judgement delivered without it is null and void.