
By Henry Ojelu
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 a High Court sitting in Okundi-Boki over the controversial 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 indigenes of the affected communities.
Joined as defendants are the Cross River State Government, the state Attorney-General and Mr Michael Owan, sued in both his personal capacity and as representative of the Nsadop Oil Palm Estate Negotiating Committee.
In the suit filed by their counsel, Mr Destiny Takon, the plaintiffs traced the dispute to a lease agreement dated September 29, 1964, which took effect from June 1, 1963. Under the agreement, the communities leased 13,528 hectares of land to the defunct Eastern Nigeria Development Corporation, ENDC, for an oil palm project.
They stated that while about 12,008 hectares were developed into the Nsadop Oil Palm Estate, over 1,500 hectares remained undeveloped, alleging that the ENDC failed to pay agreed annual ground rent and compensation for destroyed economic trees.
According to the claimants, the Cross River State 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 a suit at the Ikom Division of the State High Court, which was resolved by a consent judgment on June 1, 2004.
The government, they said, agreed to pay outstanding rent put at N611.3 million in instalments but allegedly paid only N5 million, leaving a substantial balance unpaid.
They also alleged that the government abandoned the estate for over 18 years, during which the land reverted to forest, prompting community members to re-enter 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 a 99-year lease over the estate without consulting or obtaining the consent of the host communities.
The plaintiffs further alleged that the government received N2 billion as initial payment from Presco Plc despite owing the communities accumulated rent spanning decades.
They also accused Mr Owan and others of constituting a negotiating team without the mandate of the communities and engaging the government unilaterally.
According to them, 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 address the gathering.
The claimants are seeking, among others, a declaration that the handover of the estate is null and void for lack of community consent, and that the 1964 lease agreement has been forfeited over alleged non-payment of rent for over 20 years.
They are also asking the court to declare the MoU between the state government and Presco Plc as fraudulent and void, restrain the defendants from operating on the land, and order payment of the outstanding N611.3 million with interest, as well as N500 million in general damages.
The case has been adjourned to July 7, 2026, for hearing.
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