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 against Mobil Producing Nigeria Unlimited over alleged acquisition of community land in Akwa Ibom State.
In a unanimous judgment delivered on Thursday, 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.
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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, 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.