Mobil secures Supreme Court victory overturning ₦1.4 billion compensation award

Mobil Producing Nigeria Unlimited (now Seplat Energy Producing Nigeria Unlimited) successfully overturned a ₦1.4 billion land compensation award after the Supreme Court ruled that the Federal High Court lacked jurisdiction over the dispute.

Mobil successfully argued that the entire proceedings, spanning nearly three decades, were built upon a flawed jurisdictional foundation. In a unanimous decision, the Supreme Court upheld the Court of Appeal’s reasoning, reaffirming that matters concerning compensation for compulsorily acquired land fall exclusively within the jurisdiction of State High Courts under the Land Use Act. The Court held that the Federal High Court was incompetent to assume jurisdiction from the outset, rendering the entire proceedings, including the monetary award, a nullity. This unanimous judgment by a five-man panel not only protects the assets of a major energy player but, more importantly, restores procedural order to the Nigerian judicial system.

Advisory Team:

Kenna

Ituah Imhanze