Appeal Court Sets Aside N4.7bn Judgment Against NNPC, PPMC

Wale Igbintade

The Court of Appeal, Lagos Division, has overturned a Federal High Court judgement that ordered the Nigeria National Petroleum Corporation Limited (NNPC) and its subsidiary, Pipeline and Products Marketing Company (PPMC), to pay a sum of N4,705,139,686.78 in damages to Glonik Industries Limited and Glonik Hotels Limited.
The amount was awarded for the demolition of a hotel building owned by the plaintiffs.
In a judgment delivered on August 29, 2024, the appellate court presided over by Justice Jimi Olukayode Bada, held that the Federal High Court lacked the jurisdiction to hear the case.
Other members of the panel, Justices Folasade Ayodeji Ojo and Muhammad Ibrahim Sirajo concurred with the lead judgment.
The dispute began in 2017 when officials of NNPC and PPMC allegedly demolished a hotel building owned by Glonik Industries Ltd, situated at 33 Wamom Taofeek Street, New Okoba, Lagos.
The plaintiffs claimed the demolition occurred after their property was sealed in connection with an investigation into illegal connections to the NNPC/PPMC pipeline.
Following the demolition, the plaintiffs approached the Federal High Court in Lagos, seeking damages for what they described as an unlawful seizure and destruction of their property.
In a judgment handed down on May16, 2023, Justice Ambrose Lewis-Allagoa ruled in favor of the plaintiffs, ordering NNPC and PPMC to pay the damages amounting to N4.7 billion.
However, NNPC and PPMC appealed the decision, arguing that the Federal High Court had no jurisdiction to hear the case.
The appellants, represented by Dr. Wale Babalakin, SAN, raised several issues for consideration, including whether the trial court erred in striking out their sole witness statement and in ruling that they were responsible for the demolition.
Justice Bada, in his lead judgment, agreed with the appellants’ argument, stating that the Federal High Court did not have the jurisdiction to entertain the matter.
He cited Section 251(1) of the 1999 Constitution, which limits the jurisdiction of the Federal High Court to specific matters, noting that the plaintiffs’ suit did not fall within those limits.
The judge further emphasized that the mere involvement of a federal agency, such as NNPC, in a case does not automatically confer jurisdiction on the Federal High Court.
Justice Bada pointed out that jurisdiction is fundamental to any court proceeding, and without it, any judgment or ruling made by a court is a nullity.
“The proceedings conducted by the trial court, including the judgment and the orders made therein, are hereby set aside,” Justice Bada concluded.
This ruling effectively nullifies the lower court’s judgment, and the N4.7 billion awarded to the plaintiffs is no longer enforceable.
The decision has significant implications for the case, with both parties expected to reassess their legal options moving forward.