Nigeria’s Supreme Court has ended a 29-year legal battle by dismissing a land compensation suit against Mobil, ruling that the Federal High Court lacked jurisdiction under the Land Use Act
Supreme Court Ends 29-Year Mobil Land Dispute, Nullifies ₦1.4bn Compensation Award
The Supreme Court of Nigeria has finally brought to an end a 29-year-old legal dispute by dismissing an appeal challenging the jurisdictional decision of the Court of Appeal, Calabar Division, and striking out a multi-billion-naira compensation claim against Mobil Producing Nigeria Unlimited over alleged community land acquisition in Akwa Ibom State.
In a unanimous judgment delivered on Thursday, January 30, 2026, 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.
The court ruled unequivocally that such matters fall exclusively within the jurisdiction of State High Courts, as provided under the Land Use Act.
The case originated in 1997 when His Royal Highness, Obong David Edu, alongside 132 others, instituted a suit at the Federal High Court, Uyo Judicial Division, on behalf of the Ekid people of Eket and Esit Eket Local Government Areas.
The defendants were:
- Mobil Producing Nigeria Unlimited (now Seplat Energy Producing Nigeria Unlimited),
- The Nigerian National Petroleum Corporation (NNPC), and
- The Government of Akwa Ibom State.
The claimants alleged that community land had been compulsorily acquired by the state government and sought ₦379,988,000 as compensation, with interest from July 30, 1997, for the acquisition and alleged unexhausted improvements on the land.
In March 2014, the Federal High Court ruled in favour of the claimants, awarding the full sum with 10 per cent interest per annum from April 8, 1998, until liquidation—an award which later ballooned to about ₦1.4 billion.
Mobil challenged the decision, and on July 13, 2018, the Court of Appeal, Calabar Division, unanimously set aside the judgment, holding that the Federal High Court lacked jurisdiction to adjudicate land-related compensation claims.
Unrelenting, the claimants appealed to the Supreme Court.
In its final ruling, the apex court upheld the arguments advanced by Mobil’s counsel, Ituah Imhanze Esq of Kenna Partners, and dismissed the appeal in its entirety.
The court reaffirmed settled legal principles that claims for compensation arising from compulsory land acquisition are reserved for State High Courts, not the Federal High Court.
The decision effectively restores the judgment of the Court of Appeal and nullifies the earlier ₦1.4 billion award made by the Federal High Court.
- NNPC was represented by Dr. Okiemute Akpomudge of Albert Akpomudge, SAN & Co.
- The Akwa Ibom State Government was represented by J. Jerome Akpan Esq.
- The appellants were represented by Ekom Nwoko Esq of Kanu G. Agabi and Associates.
With this ruling, the Supreme Court has conclusively ended a dispute that spanned nearly three decades, traversing the Federal High Court, Court of Appeal, and Supreme Court, while firmly reinforcing the constitutional and statutory limits of judicial jurisdiction in land and compensation matters.
