A Federal High Court sitting in Lagos has set aside a resolution of the House of Representatives directing Seplat Energy Producing Nigeria Unlimited to pay ₦72.624 billion as compensation to communities over alleged oil spill incidents.

The court ruled that the National Assembly exceeded its constitutional authority by assuming the judicial responsibility of determining civil liability and awarding monetary damages.

Delivering judgment in Suit No. FHC/LAG/CS/862/2026, Justice Allagoa held that the House of Representatives acted beyond the limits of its constitutional investigative powers when it ordered the oil company to pay compensation to the affected communities, declaring the resolution unconstitutional, null and void.

The suit was filed by Seplat Energy Producing Nigeria Unlimited against the House of Representatives, challenging the legality of the House’s report dated November 14, 2025, which found the company liable for alleged oil spill claims and directed it to pay ₦72,624,000,000 in compensation to the affected communities.

Court documents showed that the dispute arose from a letter dated November 14, 2025, issued by the Clerk to the National Assembly, conveying the House’s resolutions directing Seplat to pay compensation based on valuation reports relating to the alleged oil spill incidents.

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

Represented by Augustine Okafor of Kenna LP, alongside Kosi Ngwu, Abdulmumin Omidiya, and E.E. Egbon of Matthew Bukka & Co., Seplat argued that the House of Representatives had unlawfully usurped the constitutional powers of the judiciary by determining the company’s civil liability and ordering the payment of damages.

The legal team maintained that the House Committee on Public Petitions lacked the constitutional authority to adjudicate on civil disputes or compel the payment of compensation, insisting that such powers rest solely with courts of competent jurisdiction.

No legal representative appeared on behalf of the House of Representatives during the proceedings.

In determining the constitutional issues raised in the originating summons, Justice Allagoa granted all the reliefs sought by Seplat, holding that although the National Assembly possesses investigative powers under the Constitution, those powers do not extend to determining liability in civil matters or awarding financial compensation.

The court ruled that by directing Seplat to pay ₦72.624 billion in damages, the House of Representatives effectively exercised judicial powers reserved exclusively for the courts under the 1999 Constitution (as amended).

Justice Allagoa specifically interpreted the provisions of Sections 4(1), 6(6)(b), 88(2), and 251(1)(n) of the Constitution, concluding that the House acted ultra vires its constitutional mandate.

The judge further held that the legislature’s investigative powers cannot replace judicial proceedings or serve as a basis for imposing civil liability on individuals or corporate organisations.

The judgment reaffirmed the constitutional principle of separation of powers by drawing a clear distinction between the National Assembly’s oversight and investigative functions and the exclusive authority of the judiciary to determine civil disputes and award damages.