S’court dismisses N1.4bn compensation award against Mobil over land acquisition in Akwa Ibom

The supreme court has struck out a N1.4 billion compensation suit filed against Mobil Producing Nigeria Unlimited (MPNU) over alleged acquisition of community land in Akwa Ibom state.

In a judgment delivered on Thursday, the court dismissed an appeal that sought to challenge the jurisdictional decision of the Calabar division of the court of appeal.

The apex court also held that the federal high court had no jurisdiction to hear claims involving land disputes and compensation arising from compulsory acquisition and unexhausted improvements.

The court ruled that such matters fall squarely within the exclusive jurisdiction of state high courts under the Land Use Act.

The supreme court’s ruling effectively reinstates the court of appeal’s judgment and sets aside the N379.9 million award previously made by the federal high court.

BACKGROUND

In 1997, Obong David Edu, a traditional ruler, and 132 others, filed a lawsuit at the federal high court in Uyo.

The claimants sued MPNU, now Seplat Energy Producing Nigeria Unlimited, the Nigerian National Petroleum Company (NNPC) Limited, and the government of Akwa Ibom state.

They sought compensation on behalf of themselves and the Ekid people of Eket and Esit Eket LGAs over community land allegedly taken over by the state government through compulsory acquisition.

They demanded 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 percent per annum from April 8, 1998, until liquidation of the judgment debt.

Mobil challenged the decision at the court of appeal in Calabar.

In a 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 of Kenna Partners, and dismissed the appeal in its entirety.

The court reaffirmed established legal principles that compensation claims arising from compulsory land acquisition and unexhausted improvements fall within the jurisdiction of state high courts, not the federal high court.

Okiemute Akpomudge of Albert Akpomudge, SAN & Co represented the NNPC, while Jerome Akpan Esq appeared for the government of Akwa Ibom state.

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