Supreme Court strikes out N1.4bn award against Mobil, ends 29-year-old legal battle

The Supreme Court on Thursday brought to a close a 29 years long dispute by dismissing an appeal challenging the decision of the Court of Appeal, Calabar Division, on a jurisdictional issue and nullifying a N1.4 billion compensation award against Mobil Producing Nigeria Unlimited.

In a unanimous judgement delivered by a panel of justices led by Chioma Nwosu-Iheme, the Supreme Court held that the Federal High Court lacked jurisdiction to entertain claims arising from land disputes and compensation for compulsory acquisition or unexhausted improvements.

Other members of the panel were Mohammed Garba, Tijjani Abubakar, and Habeeb Abiru.

The court ruled that matters relating to land acquisition and compensation fall exclusively under the jurisdiction of state High Courts as provided under the Land Use Act, 1978.

The legal battle began in 1997 when traditional ruler Obong David Edu, and 132 others filed a suit at the Federal High Court, Uyo Judicial Division, against Mobil Producing Nigeria Limited (now Seplat Energy Producing Nigeria Limited), the Nigerian National Petroleum Corporation (NNPC), and the of Akwa Ibom State.

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

They demanded N379,988,000, with interest from July 30, 1997, including claims for unexhausted improvements on the land.

In March 2014, the Federal High Court ruled in favour of the claimants, awarding the full sum with 10 per cent annual interest from 8 April 1998, until the judgement debt was fully settled.

Mobil challenged this decision at the Court of Appeal, Calabar. On 13 July 2018, the appellate court set aside the Federal High Court’s judgement, ruling that it lacked jurisdiction to hear land-related compensation claims.

The claimants subsequently appealed to the Supreme Court. In Thursday’s ruling, the apex court upheld Mobil’s arguments, delivered by lawyer Ituah Imhanze of Kenna Partners, and dismissed the appeal entirely.

The court reaffirmed that compensation claims arising from compulsory acquisition of land and unexhausted improvements are exclusively matters for State High Courts.

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

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

The Supreme Court’s ruling restores the decision of the Court of Appeal and nullifies the N379.9 million award previously grant.ed by the Federal High Court.

It also reinforces a key legal principle under Nigerian law: Sections 39, 41, and 42 of the Land Use Act vest exclusive jurisdiction over land disputes and compensation claims in State High Courts.

Jurisdiction is the foundation of adjudication, and any judgement delivered without proper authority is null and void, a principle upheld in cases such as Adetayo & Ors v. Ademola & Ors.

The judgement brought to an end a nearly three decades long litigation spanning three tiers of courtss, the Supreme Court has reaffirmed constitutional and statutory limits on court jurisdiction in land and compensation matters, providing clarity and finality for parties involved in compulsory acquisition disputes.