The Supreme Court has brought to a close a protracted legal dispute spanning nearly three decades, dismissing a N1.4 billion compensation claim against Mobil Producing Nigeria Unlimited over alleged community land acquisition in Akwa Ibom State.
In a unanimous judgment delivered on January 30, 2026, the apex court upheld the decision of the Court of Appeal, Calabar Division, which had struck out the suit on jurisdictional grounds.
The Supreme Court ruled that the Federal High Court lacked the authority to entertain land-related compensation claims arising from compulsory acquisition and unexhausted improvements.
The court held that such matters fall squarely within the exclusive jurisdiction of State High Courts under the provisions of the Land Use Act, thereby reaffirming settled legal principles on court jurisdiction.
The dispute originated in 1997 when His Royal Highness, Obong David Edu, alongside 132 others, instituted a suit 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.
They sought compensation on behalf of themselves and the Ekid people of Eket and Esit Eket Local Government Areas for land allegedly compulsorily acquired by the state government.
The claimants demanded N379,988,000, along 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 the judgment debt was fully liquidated.
Mobil challenged the verdict at the Court of Appeal, Calabar Division, which, in a unanimous judgment delivered on July 13, 2018, overturned the lower court’s decision.
The appellate court held that the Federal High Court lacked jurisdiction to adjudicate land compensation disputes and accordingly set aside the judgment.
Undeterred, the claimants further appealed to the Supreme Court. However, the apex court dismissed the appeal in its entirety, upholding the submissions of Mobil’s counsel, Ituah Imhanze, and affirming that compensation claims stemming from compulsory land acquisition are matters for State High Courts alone.
The Supreme Court’s ruling effectively nullifies the N379.9 million award earlier granted by the Federal High Court and confirms the validity of the Court of Appeal’s decision.
Dr. Okiemute Akpomudge of Albert Akpomudge, SAN, represented the NNPC, while J. Jerome Akpan appeared for the Akwa Ibom State Government. The appellants were represented by Ekom Nwoko.
With this judgment, the Supreme Court has finally laid to rest a long-running legal battle that traversed three levels of the judiciary, while reinforcing the constitutional and statutory boundaries governing court jurisdiction in land and compensation disputes.
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