Appeal Court Voids N4.7bn Judgement Against NNPCL, PPMC

The Lagos Division of the Court of Appeal has nullified 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 Glonik Industries Limited and Glonik Hotels Limited N4,705,139,686.78 as damages.

Justice Ambrose Lewis-Allagoa of the lower court awarded the sum to Glonik Industries Limited and Glonik Hotels Limited in May 2023 for the demolition of a hotel building belonging to them.
However, in its judgment, the upper court presided over by Justice Jimi Olukayode Bada, held that the Federal High Court lacked the jurisdiction to hear the case.

Other panel members, Justices Folasade Ayodeji Ojo and Muhammad Ibrahim Sirajo agreed 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.
After listening to both parties, Justice Lewis-Allagoa ruled in favour of the plaintiffs, ordering NNPC and PPMC to pay the damages amounting to N4.7 billion.

However, dissatisfied with the verdict, 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 ruling that they were responsible for the demolition.

In his lead judgment, Justice Bada 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 emphasised 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; without it, any judgment or ruling made by a court is null and void.

“The proceedings conducted by the trial court, including the judgment and the orders made therein, are at this moment set aside,” Justice Bada held.