Facts:

In 1975, Shell Petroleum Development Company of Nigeria Limited popularly known as Shell, commenced Oil exploration in Owaza Community. Shell entered into lease agreement with the Appellants family for the leasing of 3.326 acres of land inclusive of 1.913 acres of swamp for its mining activities and further agreed to pay yearly compensation for damages and rent on account of their exploration to the Appellants family and other families in the community who have executed similar agreement.

This arrangement was truncated by the Civil War and it resumed after the Civil War. Around this period, the Owaza communities were balkanized into four autonomous communities viz Ipu West, Etitioha Ipu, Isi-Etitioha and Igiri-Ukwa. In 2002, following the creation of four new autonomous communities out of Owaza community, a government panel met with the leaders for compensation and utilization of communally owned amenities in the area to avert a breakdown of Law and Order. The panel submitted a report which led to the issuing of a WHITE PAPER by the Government of Abia State on the amenities provided by Shell and its contractors will be effective shared by the communities involved.

Aggrieved by the decision of the trial court, the present Respondent who was the Appellant at the court below appealed to the Court of Appeal wherein the Court allowed the appeal and set aside the judgment of the High Court which was in favour of the present Appellants. Not satisfied with the decision, the Appellants appealed to the Supreme Court.