“Court Voids Reps’ ₦72.624bn Compensation Order Against Seplat” — Holds National Assembly Cannot Award Damages

The Federal High Court in Lagos has set aside a directive by the House of Representatives ordering Seplat Energy Producing Nigeria Unlimited to pay ₦72.624 billion as compensation to communities affected by alleged oil spill incidents, holding that the National Assembly exceeded its constitutional powers.

Justice Allagoa, in a judgment delivered on Monday, ruled that the directive amounted to an unconstitutional exercise of judicial powers exclusively vested in courts of competent jurisdiction.

The court granted all the reliefs sought by Seplat in Suit No. FHC/LAG/CS/862/2026, filed against the House of Representatives.

The dispute arose from a report adopted by the House on November 14, 2025, which found Seplat liable for alleged oil spill-related damage and directed the company to pay ₦72.624 billion to the affected communities.

According to court documents, the Clerk to the National Assembly conveyed the House’s resolutions to Seplat in a letter dated November 14, 2025.

The compensation figure was reportedly based on valuation reports concerning the alleged oil spill incidents.

The House also directed that the compensation be paid in instalments and summoned Seplat’s Managing Director and Chief Executive Officer to appear before several committees of the National Assembly.

Seplat, through its counsel, Augustine Okafor, challenged the legality of the resolutions, arguing that the House of Representatives lacked constitutional authority to determine civil liability or award damages against a person or corporate body.

The company maintained that questions concerning responsibility for alleged civil wrongs and the payment of compensation could only be determined by a court after hearing evidence from the parties involved.

Seplat argued that the House had gone beyond its investigative and oversight powers by effectively adjudicating the dispute, declaring the company liable and imposing financial obligations on it.

No legal representative appeared for the House of Representatives during the proceedings.

In its judgment, the court agreed with Seplat that although the National Assembly possesses investigative powers under the Constitution, those powers do not extend to deciding civil disputes, declaring parties liable or awarding damages.

Justice Allagoa held that the House’s directive amounted to an unconstitutional usurpation of the judicial powers vested in the courts under the 1999 Constitution.

It also resolved all the constitutional questions raised in Seplat’s originating summons in the company’s favour.

It also resolved all the constitutional questions raised in Seplat’s originating summons in the company’s favour.

The court interpreted Sections 4(1), 6(6)(b), 88(2) and 251(1)(n) of the 1999 Constitution, as amended, and affirmed that only a court of competent jurisdiction could determine civil liability and award compensation arising from alleged oil spills or other civil wrongs.

The judgment effectively invalidates the House’s November 14, 2025 resolutions directing Seplat to pay the compensation and requiring its chief executive to appear before the designated committees in connection with the disputed liability.