Court Nullifies Reps’ N72.6bn Compensation Order Against Seplat

A Federal High Court in Lagos has nullified a directive issued by the House of Representatives Committee ordering Seplat Energy Producing Nigeria Unlimited (SEPNU) to pay N72.624 billion as compensation to communities over alleged oil spill incidents.

The court ruled that the House of Representatives acted outside its constitutional powers by determining civil liability and directing the payment of compensation, functions that belong solely to courts of competent jurisdiction.

Justice Allagoa delivered the judgment on Monday in Suit No. FHC/LAG/CS/862/2026, filed by Seplat Energy Producing Nigeria Unlimited against the House of Representatives. The court granted all the reliefs sought by the oil company.

The dispute arose after the House of Representatives adopted a report on November 14, 2025, which held Seplat responsible for alleged environmental damage caused by oil spills. Based on valuation reports presented before the committee, the lawmakers directed the company to pay N72.624 billion to the affected communities.

The resolution was conveyed to Seplat through a letter issued by the Clerk to the National Assembly. Apart from directing the company to settle the compensation in instalments, the House also requested the Managing Director and Chief Executive Officer of Seplat to appear before several of its committees.

Seplat challenged the directive before the Federal High Court through its counsel, Augustine Okafor. The company argued that the National Assembly lacked the constitutional authority to determine civil disputes, establish liability or compel the payment of damages.

According to the company, the powers to decide issues relating to civil wrongs and compensation are reserved exclusively for the courts under the provisions of the 1999 Constitution, as amended.

Court records showed that no legal representative appeared on behalf of the House of Representatives during the hearing of the matter.

In his judgment, Justice Allagoa agreed with Seplat’s arguments, holding that although the National Assembly has constitutional powers to conduct investigations, those powers do not extend to deciding civil disputes or awarding compensation against individuals or corporate organisations.

The judge ruled that the committee exceeded the limits of its constitutional responsibilities by acting as though it had judicial authority to determine liability and order financial compensation.

The court consequently declared the House of Representatives’ directive unconstitutional, null and void.

Justice Allagoa also granted all the constitutional reliefs sought by Seplat, including interpretations of Sections 4(1), 6(6)(b), 88(2) and 251(1)(n) of the 1999 Constitution (as amended). The judgment reaffirmed that only courts with the appropriate jurisdiction have the authority to determine civil liability and award compensation in such matters.