Oil spills: Court orders NNPC, Mobil to pay N82bn judgement debt to Akwa Ibom communities

A federal high court in Abuja has ordered the Nigerian National Petroleum Corporation (NNPC) and Mobil Producing Nigeria Unlimited to pay N81.9 billion judgement debt owed some oil communities in Akwa Ibom.

The court had on June 21 ordered ExxonMobil and the Nigerian National Petroleum Corporation (NNPC) to pay the sum as damages for oil spillage in communities in Ibeno LGA of Akwa Ibom.

The affected communities had dragged the oil companies to court, demanding adequate compensation for several oil spills that destroyed their rivers, streams and other sources of livelihood.

Although they had, in their original suit, sought about N100 billion compensation for economic losses they had suffered as a result of the oil spillages caused by the defendants during exploration, the court had awarded cumulative damages of N81.9 billion.

The court had ordered that the companies must make payment to the communities within 14 days from the date of judgment failure which attracts 8 percent interest on the principal sum annually.

Following the failure of the judgment debtors to obey the order of the court, the communities initiated garnishee proceedings against NNPC and Mobil to enforce the judgement debt.

Delivering ruling on Monday, Taiwo Taiwo, presiding judge, dismissed all the objections raised by the two oil firms and the Central Bank of Nigeria (CBN) against making the garnishee order absolute.

While 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, NNPC has submitted that the judgment cannot be enforced against it because of an erroneous name change by the judgment creditors.

However, the judge noted that the coming into force of the Petroleum Industry Act had altered the name of the judgement debtor.

He said the CEO, directors, employees of NNPC are still those of NNPC Ltd, adding that the NNPC Ltd inherited assets and liabilities of NNPC.

“It follows that the suit identity of the judgement debtor has been known, and the misnomer will be corrected since it’s a mistake of a name,” he said.

“Judgement debtor is juristic person, and the applicant has not suffered any injustice upon the mistake in the name of the applicant.

“The court has power, suo moto to grant amendment of the name if mistakenly written.

“When a misnomer occurs, it does not vitiate the subject matter if the case.

“The objective of the court is to make findings and dispense justice and not to punish a litigant for a misnomer.”

The court added that the judgement creditor can enter claims “jointly and severally” against the judgement debtor.

“I find merit in the address of the judgment creditor, particularly paragraphs 4.14 to 4.18 of his address.

“The application of the judgement debtor dated 24 December 2021 is hereby refused.” the court held.

Taiwo also held that it was wrong for the CBN to say it has to get consent from AGF before attaching the judgment debt, insisting the apex bank is not a public officer.

“Since all challenges to the order nisi dated 15 December 2021 have been dispensed with and found lacking in merit, the order nisi is hereby made absolute against the garnishes,” the judge held.

Meanwhile, Seplat Energy Plc says it has agreed to acquire the entire share capital of Mobil Producing Nigeria Unlimited from Exxon Mobil Corporation, Delaware (ExxonMobil).