Eight host communities in Ondo State have urged the State High Court sitting in Okitipupa to dismiss a preliminary objection by Rex Forestry Limited seeking to terminate a suit over alleged breaches of employment and Corporate Social Responsibility (CSR) obligations under a 2021 forestry concession agreement.
  
The claimants, Chief Oloruntobi Kehinde, the Mayegun of Kajola Community, and Ayadi Kola, General Youth Leader of the G-8 Communities Development Union, argued that they have the legal standing to enforce provisions of the agreement intended to protect the economic and social interests of the host communities.
  
In a counter-affidavit and written address in suit marked HCOK/88/CIV/2026, they opposed the company’s application dated September 22, 2026, which challenged their locus standi and relied on the doctrine of privity of contract.
  
The suit also named the Ondo State Governor and the state Attorney-General and Commissioner for Justice as defendants.
  
The communities maintained that although the concession agreement was executed between Rex Forestry and the state government on August 17, 2021, its provisions were designed to benefit the host communities, making them entitled to seek judicial enforcement.
  
They specifically relied on Clause 7.0, which they said requires the allocation of one per cent of the company’s yearly operational budget to CSR projects for the communities, alongside provisions giving qualified indigenes employment preference.
  
Citing Afolabi v. Olarewaju (2011) LPELR-3995(SC) and Rebold Industries Ltd v. Magreola (2015) 8 NWLR (Pt. 1416) 201, the claimants argued that the doctrine of privity should not defeat claims by intended beneficiaries where trust or agency principles apply.
  
They further alleged that the company bypassed qualified local candidates despite receiving their credentials during a stakeholders’ meeting on September 18, 2026. 
  
The candidates, according to the claimants, included experienced professionals and young graduates with bachelor’s and master’s degrees.
  
The communities said an audiovisual recording of the meeting and minutes of a CSR Committee meeting held on September 25, 2026, supported their allegations concerning recruitment and the company’s engagement with host-community representatives.
  
They also accused Rex Forestry of allegedly diverting CSR funds to Araromi-Obu Community, which they contended is outside the designated G-8 host communities, and introducing outsiders into the CSR monitoring committee.
  
The claimants further questioned the implementation and accounting of projects reportedly covering boreholes, school renovations, classroom construction, furniture, teacher support and solar lighting between 2022 and 2026. 
  
They alleged that some projects were defective and sought access to the company’s audited financial records and project ledgers.
  
In the substantive suit, the communities are seeking N500 million in damages, orders to produce financial records, restructuring of the CSR monitoring committee and an injunction against further alleged diversion of funds.
  
They urged the court to dismiss the preliminary objection with substantial costs, arguing that the disputed issues require evidence at trial rather than determination at the preliminary stage.