The Supreme Court has dismissed an appeal contesting the jurisdictional ruling of the Court of Appeal, Calabar Division, thereby striking out a long-running compensation suit against Mobil Producing Nigeria Unlimited over the alleged acquisition of community land in Akwa Ibom State.
In a unanimous judgment delivered on Thursday, January 30, 2026, the apex court held that the Federal High Court lacked the constitutional authority to entertain claims bordering on land disputes and compensation arising from compulsory acquisition and unexhausted improvements.
The court ruled that such matters fall exclusively within the jurisdiction of State High Courts, as clearly provided under the Land Use Act.
The appeal originated from a suit filed in 1997 at the Federal High Court, Uyo Judicial Division, by His Royal Highness, Obong David Edu, alongside 132 others. The claimants instituted the action against Mobil Producing Nigeria Unlimited—now Seplat Energy Producing Nigeria Unlimited—the Nigerian National Petroleum Corporation (NNPC), and the Akwa Ibom State Government.
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. The claim included ₦379,988,000, with interest from July 30, 1997, as compensation for the land acquisition and alleged unexhausted improvements.
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, however, 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 ruling, holding that it lacked jurisdiction to adjudicate land-related compensation claims.
Dissatisfied with the outcome, the claimants proceeded to the Supreme Court. The apex court, however, upheld the arguments of Mobil’s counsel, Ituah Imhanze Esq of Kenna Partners, and dismissed the appeal in its entirety.
The Supreme Court reaffirmed established legal principles that claims for compensation arising from compulsory acquisition of land and unexhausted improvements fall squarely within the exclusive jurisdiction of State High Courts, not the Federal High Court.
The ruling effectively restores the judgment of the Court of Appeal and nullifies the ₦379.9 million compensation award earlier granted by the Federal High Court.
Dr. Okiemute Akpomudge of Albert Akpomudge, SAN & Co represented the NNPC, while J. Jerome Akpan Esq appeared for the Akwa Ibom State Government. The appellants were represented by Ekom Nwoko Esq of Kanu G. Agabi and Associates.
With this decision, the Supreme Court has brought to a close a protracted legal battle spanning nearly three decades and traversing three tiers of court, while reinforcing the constitutional boundaries governing judicial jurisdiction in land and compensation disputes.
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