Facts:

In the Federal High Court Port Harcourt Division the plaintiffs/respondents sued in a representative capacity for themselves and on behalf of the 5 family units or villages that constitute the Obite Community in Ogba/Egbema/Ndoni Local Government Area of Rivers State. The claim of the plaintiffs/respondents was amongst others, the sum of N2.5 billion as compensation for acquisition of the plaintiffs/respondents’ land measuring approximately 28.685 hectares (about 286.840 Square Meters) by the appellant company for the establishment of a gas plant.

At the conclusion of the trial, the trial court gave judgment in favour of the respondent and awarded N25,000,000.00 (Twenty five million Naira) as damages. Disatisfied with the decision, the appellants appealed to the Court of Appeal contending that the trial court had no jurisdiction to entertain the suit having regard to the provisions of sections 29-30 of the Land Use Act and paragraphs 36 and 37 of Shedule 1 of the Petroleum Act.