₦airaland Forum

Traditional rulers and leaders of Nsadop and Abayum communities in Boki Local Government Area of Cross River State have dragged the state government, its Attorney-General and a community representative before the High Court sitting in Okundi-Boki over the disputed handover of the Nsadop Oil Palm Estate to Presco Plc.

The claimants—Chief Bernard Ntun, Chief Matthew Besong, Chief Edward Eban, Chief Sylvanus Mgbeyak, Chief Francis Okpa, Mr. Anthony Alily, Mr. Thomas Besong and Mr. Vincent Effi—are suing for themselves and on behalf of affected indigenes of the two communities.

Joined as defendants are the Cross River State Government, the Attorney-General of the state and Mr. Michael Owan, who is sued in his personal capacity and as representative of the Nsadop Oil Palm Estate Negotiating Committee.

In the suit filed on their behalf by Mr Destiny Takon, the plaintiffs traced the dispute to a lease agreement dated September 29, 1964, which took effect from June 1, 1963, under which the communities leased 13,528 hectares of land to the defunct Eastern Nigeria Development Corporation, ENDC, for an oil palm project.

In their statement of claims, they stated that while the corporation developed about 12,008 hectares into the Nsadop Oil Palm Estate, over 1,500 hectares remained undeveloped, adding that the ENDC failed to pay agreed annual ground rent and compensation for economic trees destroyed.

According to the claimants, following the creation of Cross River State, the government inherited the liabilities of the ENDC but allegedly continued the non-payment of rent and compensation.

The communities further told the court that they had earlier instituted Suit No. HM/200/2001 at the Ikom Division, of the State High Court which was resolved by a consent judgment on June 1, 2004, wherein the state government agreed to pay outstanding rent put at N611,304,750 in instalments.

They, however, alleged that only N5 million was paid after the judgment, leaving the balance unpaid.

The plaintiffs also claimed that the government abandoned the estate for over 18 years, leading to the land reverting to forest, while community members re-entered the undeveloped portions for farming.

Trouble, they said, began in December 2025 when reports emerged that the state government had executed a Memorandum of Understanding, MoU, with Presco Plc, granting it a 99-year lease over the estate.

The claimants alleged that the agreement was reached without consultation or consent of the landlord communities, despite their subsisting rights over the land.

They further told the court that the government received N2 billion as initial payment from Presco Plc, even as it allegedly owed the communities accumulated rent spanning decades.

The suit also alleged that Mr. Owan and some individuals constituted a negotiating team without the mandate of the communities and engaged the government unilaterally.

The claimants stated that a meeting held on March 21, 2026, to formally hand over the estate to Presco Plc was resisted by community members, leading to protests and disruption of the event.

They added that representatives of Abayum community and their counsel were denied the opportunity to address the gathering on alleged irregularities surrounding the transaction.

Among the reliefs sought, the plaintiffs are asking the court to declare the handover of the Nsadop Oil Palm Estate to Presco Plc as null and void for lack of community consent.

They are also seeking a declaration that the 1964 lease agreement has been forfeited on grounds of forfeiture for challenge of the overlordship of the landlord communities and failure to pay rent for over 20 years.

The claimants further prayed the court to declare the MoU between the state government and Presco Plc as fraudulent, null and void.

They are equally asking for an order restraining the defendants from entering or operating on the land, as well as payment of the outstanding N611.3 million with interest and N500 million as general damages for alleged breach of contract.

The suit has been fixed for hearing on July 7, 2026.

Ushame:
Calabar kitchen here in Lagos... D only tin on my mind ryt now

Gotocourt:
Communities in for long thing as government owns all lands. They should fight for compensation of destruction of economic trees 🤷🏿

Authoreety:
Na dog meat dey hungry u like this o

TheHeat:
https://www.vanguardngr.com/2026/05/host-communities-sue-criver-govt-over-oil-palm-estate-deal/amp/