NLNG

Court awards N100Bn damages against NNPC, NLNG,and 2 others

The Federal High Court sitting in Abuja has ordered the Nigerian National Petroleum Corporation (NNPC), Nigeria LNG Limited, and two others to pay N100Bn damages to oil host Finima Community of Bonny Local Government Area of Rivers State for breaches of lease agreement and neglect.

Justice Donatus Okorowo of the Federal High Court Abuja Division granted the order in a judgment in the suit marked FHC/ABJ/CS/1419/2022, brought against Federal Minister of Petroleum Resources, the Nigerian National Petroleum Company Limited ( NNPC) Nigeria LNG Limited and Nigerian Content Development And Monitoring Board ( NCDMB ).

The suit was filed on 15th August 2022, by representatives of the Buoye Omuso (Brown) Major House of Finima (Founders of Finima, and owners of all lands in Finima) through their counsel Prof.Mike Ozekhome, SAN.
for themselves and on behalf of the People of Finima Community of Bonny Local Government Area of Rivers State.

Delivering the judgment, Justice Donatus Okorowo held that there exists a binding lease agreement between the NNPC, the NLNG Ltd and the FINIMA community; and that the community was entitled to compensation for breach of the said lease agreement.

The court also agreed with the plaintiffs that the defendant’s failure to provide adequate relocation arrangements for affected members of the community was a breach of the said lease agreement and the NCDMB community guidelines.

Justice Okorowo disagreed with the defendants’ objection that the plaintiffs have no locus to institute the suit in a representative capacity for the FINIMA community because the plaintiffs had testified and provided in court, a copy of the resolution wherein the entire community agreed to that effect.

They also,most notably, tendered an earlier judgement in rem delivered by Hon. Justice Inko-Tariah, sitting at the High Court of Rivers state, in suit no: PHC/174/72, wherein the trial Judge had declared that, “all land situate and lying between FINIMA and Bonny belong to the FINIMA community represented by the Plaintiffs”, he noted.

Justice Okorowo further ordered the defendants to effect a lease agreement between the plaintiffs and the NLNG and /or any other relevant party within thirty clear days of judgement.

Consequently,the Judge awarded 100 Billion naira as general damages against the defendants for their neglect to recognize the plaintiffs as their host community.

He also granted an order of perpetual injunction restraining the defendants from carrying out further works or operations on the site of the NLNG Plant in Finima Community until due and total compliance with the terms and conditions agreed upon and compliance with relevant laws.

The court added that, the Nigerian Content Development and Monitoring Board (NCDMB), miscarried in its statutory duty by failing to enforce the lease agreement and its relevant laws against the defendants for their failure to provide adequate compensation and are thus likewise liable.

In their representatives capacity the Plaintiffs: Warialabo Inima Dickson Brown, Warialabo Airigha Christopher Goni Brown, Warialabo Tuwonimi Iyariari, KSC
 had sued for themselves and on behalf of the People of Finima Community of Bonny
Local Government Area of Rivers State under the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010, and the Nigerian Content Development and Monitoring Board – Community Content Guidelines (NCDMB-CCG), 2017.

The court answered in the affirmative to all the seven declarations and prayers sought by the plaintiffs.

It granted all the seven reliefs sought by the plaintiffs, including a declaration that the Plaintiffs who sued in a representative capacity for themselves and on behalf of the Buoye Omuso (Brown) Major House of Finima, (Founders of Finima, and owners of all lands in Finima) and Finima Community in Bonny Local Government Area, Rivers State, is the host community housing the NLNG Plant and other NLNG facilities, referred to in the 2ndDefendant’s letter dated 3rd March, 1978, with reference No: GPD.001/S.1/21 50230/225, same being their ancestral homelands.

A declaration that the refusal, failure and/or neglect by the defendants, their representatives, aides, workers, agents, privies, and servants, to enter into a lease agreement with the plaintiffs, and ensure compliance with the terms agreed upon by the 2ndDefendant and NCDMB Community guidelines constitutes a deprivation of the rights of the Plaintiffs as host community and a breach of the terms so agreed upon, among other reliefs.