The Supreme Court has brought to an end a 29-year legal battle between Mobil Producing Nigeria Unlimited and a group of claimants from Akwa Ibom State, voiding a ₦1.4 billion compensation claim over alleged community land acquisition.
In a unanimous judgement delivered last Thursday, January 29, 2026, the apex court ruled that the Federal High Court lacked the jurisdiction to entertain the matter, holding that such cases fall within the exclusive jurisdiction of State High Courts under the Land Use Act.
The dispute dates back to 1997 when His Royal Highness, Obong David Edu, and 132 others instituted a suit against 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 sought compensation for community land allegedly compulsorily acquired by the state government, demanding ₦379,988,000 with interest.
The Federal High Court had ruled in favour of the claimants in 2014, awarding the full sum with interest.
However, the Court of Appeal, Calabar Division, set aside the judgement, citing lack of jurisdiction.
The Supreme Court has now upheld the Court of Appeal’s decision, reaffirming established legal principles that claims for compensation arising from compulsory land acquisition and unexhausted improvements are matters reserved exclusively for State High Courts.
The judgement effectively voids the ₦379.9 million award earlier granted by the Federal High Court, bringing the long-running dispute to a close.
The decision is a significant victory for Mobil Producing Nigeria Unlimited and has implications for similar cases in Nigeria.
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