Oil spill: Court orders NNPC, Mobil to pay N82bn to Akwa Ibom communities

The Federal High Court, Abuja on Monday ordered the Nigerian National Petroleum Corporation (NNPC) and Mobil Producing Nigeria Unlimited to pay the sum of N82 billion judgement debt owed to some oil-producing communities in Akwa Ibom State.

The communities in Ibeno Local Government Area of the state led by Obong Effiong Archianga and nine others had sued NNPC and Mobil for economic losses they had suffered as a result of the oil spillages caused by the companies during exploration.

In the suit, they had filed through their lawyer, Lucius Nwosu (SAN), the communities sought about N100 billion compensation from the companies.

Delivering the judgement in June 2021, the presiding judge, Taiwo Taiwo, had ordered the Central Bank of Nigeria (CBN) on behalf of the airing companies to pay the oil communities cumulative damages of N81.9 billion within 14 days over the oil spill that ruined their economic activities.

The court ruled that the amount would incur eight per cent interest on the principal sum annually if not paid as ordered.

However, on December 15, 2021, in a garnishee nisi proceedings, the apex bank had insisted that it had to get the consent of the Attorney General of the Federation (AGF) before enforcing the garnishee judgement.

In the judgement on Monday, Justice Taiwo dismissed the claim of the apex bank and ordered it to release funds belonging to NNPC and Mobil to the tune of N82 billion to the communities.

The court said it was wrong for the CBN to say it has to get the consent of the AGF before attaching the judgment debt, insisting that, the apex bank is not a public officer.

The Judge also issued an order of mandamus mandating the 1st Defendant, NNPC, to discharge its duties by ensuring that its venture operators clean up, detoxify, and rehabilitate the land ecosystem, underground water, and air quality of the Akwa Ibom oil communities.

Justice Taiwo held that both oil giants were negligent in the way they handled oil spills that caused environmental degradation in the communities, adding that they were unable to produce any evidence to show they compensated the communities.

It held that expert witnesses the NNPC brought to testify before the court, tendered “very dubious documents” and further dismissed the company’s contention that the suit was statute barred as of 2012 when it was filed by the communities.

The judge further held that the claim by NNPC that the case ought to have been filed within 12 months after the alleged spillages occurred, lacked merit and consequently awarded the sum of N42.8bn to the Plaintiffs as damages for intangible losses, N21.9bn special damages as annotated and another N10bn as general damages.