BREAKING: Supreme Court Overturns ₦379.9 Million Land Dispute Judgment Against Mobil

The Supreme Court has thrown out an appeal contesting the Court of Appeal’s decision on jurisdiction, thereby terminating a ₦1.4 billion compensation claim brought against Mobil Producing Nigeria Unlimited over the alleged acquisition of community land in Akwa Ibom State.

In a unanimous judgment delivered on Friday, January 30, 2026, the apex court ruled that the Federal High Court had no authority to hear cases relating to land disputes or compensation claims arising from compulsory acquisition and unexhausted improvements.

The court held that such matters fall strictly within the exclusive jurisdiction of State High Courts under the Land Use Act, not the Federal High Court.

By this ruling, the Supreme Court upheld the earlier decision of the Court of Appeal in Calabar, which had overturned the trial court’s judgment in favour of the claimants.

The case originated from a suit filed in 1997 by His Royal Highness, Obong David Edu, along with 132 others, at the Federal High Court in Uyo.

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 filed the suit on behalf of the Ekid people of Eket and Esit Eket Local Government Areas, seeking compensation for land they alleged was compulsorily taken over by the state government.

The claimants demanded ₦379,988,000, with interest from July 30, 1997, as compensation for the land acquisition and unexhausted improvements on the property.

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

Appeal Court Reverses Decision

Mobil challenged the ruling at the Court of Appeal, Calabar Division. In a unanimous judgment delivered on July 13, 2018, the appellate court allowed Mobil’s appeal and set aside the Federal High Court’s decision, holding that it lacked jurisdiction over the matter.

Dissatisfied, the claimants proceeded to the Supreme Court.

However, the apex court agreed with the submissions of Mobil’s counsel, Ituah Imhanze (SAN) of Kenna Partners, and dismissed the appeal completely.

The Supreme Court reiterated the established legal position that compensation claims arising from compulsory land acquisition and unexhausted improvements are reserved for State High Courts.

The ruling effectively nullifies the ₦379.9 million award earlier granted by the Federal High Court and restores the judgment of the Court of Appeal.

Dr. Okiemute Akpomudge (SAN) represented the NNPC, while J. Jerome Akpan appeared for the Akwa Ibom State Government. The appellants were represented by Ekom Nwoko of Kanu G. Agabi and Associates.

With this decision, the Supreme Court has brought to a close a legal dispute spanning almost 30 years and reaffirmed the limits of judicial jurisdiction in land and compensation matters.