Court voids Reps’ N72.6bn compensation directive against Seplat, says judicial powers usurped

A Federal High Court in Lagos has set aside a directive from the House of Representatives Committee that ordered Seplat Energy Producing Nigeria Unlimited (SEPNU) to pay N72.624 billion in compensation to communities. The court found that the National Assembly had exceeded its constitutional powers, amounting to an unconstitutional usurpation of judicial powers vested solely in courts of competent jurisdiction.

Justice Allagoa, in a judgment delivered on Monday, granted all the reliefs sought by Seplat in its suit against the House of Representatives. The company had contested a November 14, 2025, report by the House, which found Seplat liable for alleged oil spill-related damages and mandated the payment of N72.624 billion as compensation to affected communities. Court documents reveal the dispute originated from a letter by the Clerk to the National Assembly, conveying the House's resolutions and directing Seplat to pay based on valuation reports of the alleged incidents. The House had also summoned the company's CEO to appear before its committees.

Seplat, represented by Augustine Okafor, argued that the House lacked the constitutional authority to determine civil liability or award damages. The company contended that the report was unconstitutional, as the determination of liability for alleged civil wrongs and the award of compensation are exclusively judicial functions under the 1999 Constitution. Notably, no legal representative appeared for the House of Representatives during the proceedings.

The court sided with Seplat's submissions, ruling that the House had overstepped its investigative powers by adjudicating a civil dispute and ordering compensation. Justice Allagoa affirmed that while the House possesses investigative powers, these do not extend to determining civil liability or awarding damages against individuals or corporate entities. Consequently, the court upheld all constitutional questions raised by Seplat, declaring the House's directive unconstitutional, null, and void. All reliefs sought by Seplat were granted, affirming that only courts of competent jurisdiction can determine civil liability and award compensation.

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The directive amounted to an unconstitutional usurpation of the judicial powers exclusively vested in courts of competent jurisdiction.