Saturday, July 18, 2026

NNPC, Mobil ordered to pay N82 billion as damages for oil spillage in Akwa Ibom

The judge particularly took a swipe at the NNPC for being interested in revenue generation at the expense of the lives of the people.

• June 21, 2021
NNPC and Moblil
Nigerian National Petroleum Corporation (NNPC) and Moblil

The Abuja Division of the Federal High Court, Abuja, has ordered the Mobil Producing Nigeria Unlimited and the Nigerian National Petroleum Corporation (NNPC) to pay the oil communities in Ibeno Local Government Area of Akwa Ibom a cumulative damages of 81.9 billion over oil spillage.

Justice Taiwo Taiwo, in a judgment debt, ordered that the payment must be paid within 14 days, and failure of which 8 per cent interest would be accruable on the principal sum annually.

Delivering judgment on Monday in a joint suit instituted against the two defendants by the aggrieved oil producing communities, Justice Taiwo held that the American oil company and NNPC were negligent in the way and manner they handled oil spills that caused environmental degradation in the communities.

Mr Taiwo particularly took a swipe at the NNPC for being interested in the revenue generated from oil exploration at the expense of the lives of the people in the communities.

He said that he believed the oral and documentary evidence adduced by the plaintiffs to support their claims that lives were made miserable for them when their water and land were polluted through crude oil leakages from old oil pipelines.

He noted the claims of Mobil that it did clean up exercise and held that the oil giant failed to address the compensation that would have mitigated the economic losses of the people said to be mainly fishermen and farmers.

Besides, the judge described as unreliable witnesses called by Mobil adding that for no reason they became evasive during cross examination by counsel to the plaintiffs.

He held that the oral and documentary evidence produced by Mobil Company were not in any way helpful to the court as they were targeted at serving predetermined interests.

The judge further said that some of the witnesses ought not to have come to the court at all going by the discrepancies in the documents brought to the court, adding that they only embarked on guess research that was not reliable.

He further held that both Mobil and NNPC were negligent by their failure to visit places of the leakages of the crude oil that led to the contamination of Rivers and creeks.

Mr Taiwo rejected the claims of the Mobile joint venture partner, NNPC, that the suit was statute barred in 2012 when it was filed by the aggrieved plaintiffs.

The NNPC had claimed that the suit was not filed within 12 months by the plaintiffs as required by the provision of Section 12, Sub Section 1 of the NNPC Act, 2004.

However, the judge held that the instant suit had to do with fundamental rights that cannot be rendered impotent by the statute of limitations.

He stated further that Section 11, Subsection 5 of the Oil Pipeline Act made it mandatory for oil companies to monitor and repair their pipelines to avoid spillages and environmental degradation.

Mr Taiwo consequently awarded the sum of  N42.8 billion as damages for intangible losses, N21.9 billion for special damages as annotated  and N10 billion as general damages.

Ibeno communities led by Obong Effiong Archianga and 9 others had through their lawyers, Lucius Nwosu, SAN, brought the action against NNPC, Mobil Producing Nigeria Unlimited and ExxonMobil Corporation.

They had sought about N100 billion compensation for economic losses suffered from oil spillages caused by the defendants during exploration.

The third defendant was however deleted from the court action when the court established that there was no cause of action against it.

We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.

More from Peoples Gazette

farmers

Agriculture

FG tasks ECOWAS on leveraging financing strategies for agroecology

The federal government has urged stakeholders in the agriculture and finance sectors in the West Africa region to leverage financing strategies to enhance agroecology practices

Katsina State

Politics

Katsina youths pledge to deliver over 2 million votes to Atiku

“Katsina State is Atiku’s political base because it is his second home.”

Nigeria Data Protection Act (NDPA)

NationWide

Low awareness biggest threat to data protection in Nigeria, says expert

According to Mr Oni, many Nigerians are unaware that they have rights over their personal information.

Eugenia Abdallah

States

Edo commissioner urges responsible parenting after runaway children reunite with family

According to her, the incident highlights the importance of creating safe and supportive home environments.

Lagos

Residents, traders bemoan health risks as refuse overruns Oyingbo road

Ms Adebayo said that the situation had discouraged customers from patronising them.

Nigeria’s Minister of State for Foreign Affairs, Amb. Sola Enikanolaiye and Ghana’s Minister of Foreign Affairs, Samuel Ablakwa.

Africa

Nigeria, Ghana join forces against afrophobic protests

The ministers agreed to deepen bilateral ties to ensure the issue of Afrophobia is placed on the agenda of the next African Union summit.

Heading 3

Troops kill two terrorists, rescue three victims in two-day raid of Benue hideout

Mr Zubairu stated, “The operation commenced at about 0300 hours on 16 July and concluded on 17 July 2026.”