Court of Appeal Upholds FCT High Court Jurisdiction in Shell–Martreach Dispute

The Court of Appeal, Abuja Division, has dismissed a multi-billion naira interlocutory appeal filed by Shell Nigeria Exploration and Production Company Limited (SNEPCo) against Martreach Logistics Ltd concerning the appointment of a Dock Labour Employer at the Bonga On/Offshore Terminal.

In a judgment delivered by Justice Balkisu Bello Aliyu, the appellate court upheld the earlier decision of the High Court of the Federal Capital Territory (FCT), which had assumed jurisdiction over the matter.
The dispute stems from a claim by Martreach Logistics Ltd that it was duly appointed as a stevedoring service provider for a ten-year period beginning in January 2013.
SNEPCo had raised several technical and jurisdictional objections, all of which were resolved in favour of Martreach Logistics Ltd.
The appellant argued that the case constituted a maritime claim and should fall within the exclusive jurisdiction of the Federal High Court. However, Justice Aliyu ruled that the appointment of stevedores does not fall under the provisions of the Admiralty Jurisdiction Act.
The suit involves significant financial claims, including N36.9 billion in unpaid royalties, N2.1 billion in pre-operational costs, and N25 billion in general and exemplary damages.
The court also dismissed claims of improper service of court processes, noting that SNEPCo’s counsel had already entered an appearance and provided an address within the court’s jurisdiction.
Justice Aliyu further held that the suit filed by Martreach Logistics Ltd disclosed a reasonable cause of action, adding that determining the validity of the contract at this stage would be premature.
“It will amount to deciding the substantive suit at the preliminary stage to determine this issue which neither the trial Court nor this Court should do,” the Justice stated.
The appeal was consequently dismissed, with a cost of N500,000 awarded to the first respondent, paving the way for the substantive case to proceed at the lower court.