A major legal confrontation has erupted in Cross River State as traditional rulers and leaders of Nsadop and Abayum communities have dragged the state government and others before the High Court sitting in Okundi-Boki, accusing them of a land grab over the disputed Nsadop Oil Palm Estate.
The suit, filed by Chiefs Bernard Ntun, Matthew Besong, Edward Eban, Sylvanus Mgbeyak, Francis Okpa, alongside Anthony Alily, Thomas Besong and Vincent Effi, is instituted on behalf of affected indigenes of the two communities.
The action was filed by their counsel, Mr. Destiny Takon.
Listed as defendants are the Cross River State Government, the Attorney-General of the state and Mr. Michael Owan, who is sued both personally and as representative of the Nsadop Oil Palm Estate Negotiating Committee.
The claimants alleged that the state government unlawfully ceded the estate to Presco Plc under a controversial 99-year lease without the consent of the host communities, despite longstanding obligations owed to them.
They traced the dispute to a lease agreement dated September 29, 1964, which took effect from June 1, 1964, under which the communities granted 13,528 hectares of land to the defunct Eastern Nigeria Development Corporation, ENDC, for the establishment of an oil palm estate.
According to the plaintiffs, although about 12,008 hectares were developed into the Nsadop Oil Palm Estate, over 1,500 hectares remained undeveloped, while the corporation allegedly defaulted in paying annual ground rent and compensation for economic trees destroyed.
They further contended that upon the creation of Cross River State, the government inherited the liabilities of the ENDC but continued the alleged failure to meet its obligations to the landlord communities.
The communities told the court that they had earlier instituted Suit No. HM/200/2001 at the Ikom Division, which was resolved through a consent judgment delivered on June 1, 2004, mandating the state government to pay outstanding rent put at N611,304,750 in instalments.
However, they alleged that only N5 million was paid after the judgment, leaving the bulk of the debt outstanding.
The claimants also accused the government of abandoning the estate for over 18 years, resulting in the land reverting to forest, while indigenes re-entered the undeveloped portions for farming.
The dispute, they said, escalated in December 2025 following reports that the state government had entered into a Memorandum of Understanding, MoU, with Presco Plc, granting the company rights to operate the estate for 99 years.
They argued that the agreement was executed without consultation or approval of the landlord communities and in violation of their rights.
The plaintiffs further alleged that the government received N2 billion as initial payment from Presco Plc while failing to settle accumulated rent owed to the communities.
They also accused Mr. Owan and some individuals of constituting a negotiating team without community mandate and engaging the government unilaterally.
According to the claimants, an attempt to formally hand over the estate to Presco Plc on March 21, 2026, 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 speak at the meeting, despite raising concerns over alleged irregularities.
Among the reliefs sought, the claimants are asking the court to declare the handover of the estate to Presco Plc null and void for lack of community consent.
They are also seeking a declaration that the 1964 lease has been forfeited on grounds of abandonment and failure to pay rent for over two decades.
The plaintiffs further prayed the court to nullify the Memorandum of Understanding between the state government and Presco Plc, restrain the defendants from entering the land, and compel payment of the outstanding N611.3 million with interest.
They are equally seeking N500 million as general damages for alleged continuous breach of the lease agreement.
The case has been fixed for July 7, 2026 for hearing.
