Court Nullifies House of Reps’ N72.6bn Compensation Order against Seplat, Says National Assembly Cannot Award Damages

Court Nullifies House of Reps’ N72.6bn Compensation Order against Seplat, Says National Assembly Cannot Award Damages A Federal High Court in Lagos has nullified a resolution of the House of Representatives directing Seplat Energy Producing Nigeria Unlimited to pay N72.624 billion as compensation to communities over alleged oil spill incidents. The court held that the National Assembly exceeded its constitutional powers by assuming the judicial function of determining civil liability and awarding damages. In a judgement delivered by Justice Allagoa in Suit No. FHC/LAG/CS/862/2026, the court ruled that the House of Representatives acted outside the scope of its constitutional investigative powers when it directed the oil company to pay compensation to alleged victims, declaring the resolution unconstitutional, null and void. The suit, filed by Seplat Energy Producing Nigeria Unlimited against the House of Representatives, challenged the legality of the House’s report of November 14, 2025, which found the company liable for alleged oil spill-related claims and ordered it to pay N72,624,000,000 to affected communities. According to court documents, the dispute stemmed from a letter dated November 14, 2025, issued by Clerk to the National Assembly, conveying resolutions of the House directing Seplat to pay the compensation based on valuation reports relating to alleged oil spill incidents. The House further instructed that the compensation be paid in instalments and summoned the company’s Managing Director and Chief Executive Officer to appear before several committees. Seplat, through its counsel, Augustine Okafor of Kenna LP, leading Kosi Ngwu, Abdulmumin Omidiya, and E.E. Egbon of Matthew Bukka & Co., argued that the House of Representatives had unlawfully usurped the constitutional powers of the judiciary by determining the company’s civil liability and ordering it to pay damages. The legal team contended that the House Committee on Public Petitions lacked the constitutional authority to adjudicate on alleged civil wrongs or compel payment of compensation, insisting that such powers reside exclusively in courts of competent jurisdiction. No legal representation appeared on behalf of the House of Representatives during the proceedings. In resolving the constitutional questions raised in the originating summons, Allagoa upheld all the reliefs sought by Seplat, holding that while the National Assembly possesses investigative powers under the constitution, those powers do not extend to determining liability in civil disputes or awarding monetary compensation. The court held that by directing Seplat to pay N72.624 billion as damages, the House effectively exercised judicial powers reserved exclusively for the courts under the 1999 Constitution (as amended). 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 declared that the legislative body’s investigative authority could not be used as a substitute for judicial proceedings or as a basis for imposing civil liability on individuals or corporate entities. The judgement reinforces the constitutional separation of powers by drawing a clear distinction between the National Assembly’s oversight and investigative responsibilities and the exclusive judicial authority of the courts to determine civil disputes and award damages.