Justice Inyang Ekwo of the Federal High Court, Abuja, has issued an order to the Central Bank of Nigeria (CBN) to pay the people of Ejama Community in Eleme Local Government Area of Rivers State judgement sum and interest totaling N182.7 billion from the account of First Bank of Nigeria.
FBN manages the account of Shell Petroleum Development Company which the court compelled to pay the sum for causing damage to the community and its environs as a result of oil spill.
The judge made the order absolute against the CBN and First Bank sequel to a similar one made by Justice Ibrahim Buba on June 3, 2019 while delivering judgement in a suit brought before him by the representatives of Ejama community, who have been in a long legal battle with SPDC.
In his ruling, Ekwo after hearing Mathew Echo with Princewill Akinseye George and others said an “Order Absolute is hereby made upon the Order Nisi of this court made on June 3, 2019 compelling the garnishee to pay over to the judgement creditors/applicants monies belonging to the guarantor/surety/debtor (First Bank of Nigeria Limited) in the garnishee’s (CBN) custody in satisfaction of the judgement debt in Suit No. FHC/PH/CS/231/2001 (later renumbered Suit No. FHC/ASB/ CS/57/2010): Chief Isaac Osaro Agbara & 5Ors. V. C.B.” & 2 Ors. Suit No: FHC/ABJ/CS/562/19 2/ Agbara & Ors, vs. the Shell Petroleum Development Company of Nigeria Limited & Ors., which judgement debt the guarantor/surety/debtor secured and guaranteed to pay the judgement creditors in the sums of: (a) as special damages; (b) Interest for delayed payment for five years from 1996 at 25 per cent per annum i.e. (c) 25 per cent of the said sum till the date of judgment. (d) N10 billion as general damages; and (e) 10 per cent interest on the judgement debt till payment giving a total of N76, 871,175,831.18 as at June 14, 2010, being the date of the judgement but with the accrual of post judgement interest totalled N182.768, 696,651.89.”
The case, which started in 1991, was originally instituted at the Rivers State High Court, Nchia Division, by six indigenes of Ogoniland against the Royal Dutch Shell Plc, Netherlands, Royal Dutch Shell Plc, United Kingdom, and SPDC over alleged oil spills that occurred when Shell operated in the community.
The plaintiffs alleged that it was the same case that led to the Ogoni struggle championed by the late Mr. Ken Saro Wiwa.
Judgment was eventually entered in their favour against Shell by the state High Court, whereupon the defendant appealed against the said judgment.
However, in 2001, a fresh suit was filed by some representatives of the Ogoni people at the Federal High Court in Port Harcourt presided over by Justice Ibrahim Buba claiming N17bn and interests on the said sum for the losses allegedly caused by the oil spills.
Justice Buba in his judgment in 2010 awarded the sum to the plaintiffs.
The court equally granted the Ogoni chiefs 25 per cent interest charge on the principal sum of about N17bn.
SPDC appealed the judgment and applied for a stay of execution pending the appeal. As a condition for granting it, the court asked Shell’s bankers, First Bank, to provide a guarantee of the judgment sum – a condition that was complied with.
But Shell’s appeal failed at the Court of Appeal on technical grounds.
Accordingly, in December 2018, the judgment creditors (Ogoni representatives) commenced garnishee proceedings at the Federal High Court in Owerri and filed contempt proceedings against the bank before Justice Buba who delivered the judgment in 2010.
After the Appellate Court ruling, Shell and First Bank went to the Supreme Court but their appeal was dismissed.
Consequently, the Ogoni chiefs resumed the garnishee proceedings.
