The Federal High Court in Uyo has upheld the governance structure set out in the Petroleum Industry Act (PIA) 2021, dismissing a suit that sought to challenge the administration of the NNPC/Mobil Producing Nigeria Unlimited (MPN) Joint Venture Emoimee Host Community Development Trust (HCDT).
In a judgment delivered by Justice C. S. Onah, the court struck out the action filed by the Incorporated Trustees of Esit Eket Youth Association against Seplat Energy Producing Nigeria Unlimited (SEPNU), the Trust’s trustee, and four other defendants. The court held that the association lacked the legal standing (locus standi) to bring the suit.
The plaintiffs had sought inclusion in the Trust’s decision-making processes and demanded access to detailed records of the statutory three per cent settlor’s remittances allocated to host communities in Esit Eket Local Government Area of Akwa Ibom State.
Upholding a preliminary objection filed by SEPNU’s counsel, Dr. Jude T. U. Nnodum Jr. of KENNA LP (leading Abasiemediong Etuk, MCArb, and Olusegun Akeju), Justice Onah ruled that the association was not among the entities recognised under Chapter III of the PIA to administer or challenge the operations of a Host Community Development Trust. As a result, it lacked the requisite legal capacity to maintain the action.
The court also rejected the claim that the suit was brought in the public interest. It held that simply describing a case as a public-interest matter cannot replace a legally enforceable interest, especially where the reliefs sought are intended primarily for the claimant’s benefit.
Justice Onah further found that the suit disclosed no reasonable cause of action against SEPNU, noting the absence of any evidence that the company had breached provisions of the Petroleum Industry Act. The matter was consequently struck out for want of jurisdiction.
Legal observers say the ruling offers important judicial clarity on the PIA, affirming that only entities expressly recognised under the law have the capacity to participate in or challenge the governance of Host Community Development Trusts. The decision is expected to strengthen certainty for settlors, trustees and operators, including SEPNU, by reinforcing that HCDT administration must strictly follow the statutory framework established by the Act.
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