Court Awards N10bn Against Mobil for Oil Spillage

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  • Court Awards N10bn Against Mobil for Oil Spillage

A Federal High Court in Lagos has ordered Mobil Producing Nigeria Unlimited to pay N10bn to victims of a January 12, 1998 oil spillage which occurred in Akwa Ibom State when a pipeline belonging to the company burst, releasing its content into the marine environment.

About 40,000 barrels of Qua Iboe light crude spilled into the environment when the 25-year-old pipeline burst in the state.

The oil spillage had spread over about 850km of Nigeria’s coastline and up to Republic of Benin.

A suit marked FHC/L/CS/274/2002 had been filed against Mobil Producing Nigeria Unlimited by one Chief M.A. Ajanaku and others, who sued on behalf of themselves and the fishing communities and cooperatives of Lagos.

The plaintiffs had claimed that their tools of trade and occupational locations and environment were destroyed by the Idoho oil spillage.

They had urged the court to order Mobil Producing Nigeria Unlimited to commence post-impact remediation programmes in respect of their land and waters polluted by the Idoho oil spill and do all such acts and things to clean up their environment and restore it to its original state.

They also urged the court to order the oil company to pay them N8.4bn as special damages with an annual interest of 10 per cent from January 26, 1998 until till the final liquidation of the award.

They also urged the court to order the oil company to pay them N1.4bn as general damages for the infraction of their constitutional and statutory rights and interest on the judgment sum at the rate of 10 per cent from the date of judgment until full payment.

In a judgment on Wednesday, 14 years after the suit was filed, Justice Ibrahim Buba affirmed that the plaintiffs’ right to life and right to live in an environment favourable to their socio-economic development as guaranteed under Section 33 of the 1999 constitution and Articles 22 and 24 of the African Charter on Human and Peoples Rights (Ratification and Enforcement Act Cap 10, Laws of the Federation of Nigeria 1990, had been violated on account of the oil spillage.

The judge awarded N10bn against Mobil Producing Nigeria Unlmited in favour of the plaintiffs.

About the Author

Samed Olukoya
Samed Olukoya is the CEO/Founder of investorsking.com, a digital business media, with over 10 years' experience as a foreign exchange research analyst and trader. A graduate of University of East London, U.K. and a vivid financial markets analyst.

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