Overview
Court Declares House of Representatives' N72B Seplat Compensation Order Null and Void – Investigative Powers Don't Extend to Awarding Damages
A Federal High Court sitting in Lagos, on Monday, 20 July 2026, set aside a directive of the House of Representatives Committee, compelling Mobil Producing Nigeria Unlimited (now SEPLAT Energy Producing Nigeria Unlimited) to pay the sum of ₦72,624,000,000.00 (Seventy-Two Billion, Six Hundred and Twenty-Four Million) as damages/compensation to communities for alleged oil spill, holding that the demand amounted to a usurpation of the judicial powers of the courts and was therefore unconstitutional, null and void.
In a suit marked as Suit No: FHC/LAG/CS/862/2026 - Seplat Energy Producing Nigeria Unlimited V House of Representatives, Seplat contended that the House of Representatives’ Report of 14 November 2025, which held the company liable to pay ₦72,624,000,000.00 to some unknown individuals, was unconstitutional as the determination of liability and award of damages were matters reserved exclusively for the courts.
According to court documents seen by our correspondent, the suit arose following a letter dated 14 November 2025, issued by the Clerk to the National Assembly, conveying resolutions of the House of Representatives directing the Plaintiff to pay ₦72,624,000,000.00 to affected communities based on valuation reports relating to alleged oil spill incidents. The House further directed that the compensation be paid in instalments and summoned the Plaintiff’s Managing Director and Chief Executive Officer to appear before several committees of the House.
Seplat’s Counsel, Augustine Okafor of Kenna LP, leading Kosi Ngwu, Abdulmumin Omidiya; and E. E. Egbon of Matthew Bukka & Co., argued that the Report of House of Representatives, finding Seplat liable for alleged civil wrong was unconstitutional and amounted to the usurpation of the judicial powers vested in the Courts.
Mr Okafor further argued that the directive of the House of Representatives’ Committee on Public Petitions directing the Plaintiff to pay the sum of NGN72,624,000,000.00 (Seventy-Two Billion, Six Hundred and Twenty-Four Million Naira) as compensation, was unconstitutional. No lawyer appeared for the House of Representatives.
Ruling on the Originating Summons, the court upheld all the constitutional questions raised in the Originating Summons and held that the House of Representatives exceeded the limits of its constitutional powers by effectively determining Seplat’s civil liability and directing it to pay compensation to alleged victims, a function reserved exclusively for courts of competent jurisdiction.
Honourable Justice Allagoa of the Federal High Court, Lagos, granted all the reliefs sought in the originating summons filed by Seplat Energy Producing Nigeria Unlimited, which sought the interpretation of Sections 4(1), 6(6)(b), and 88(2) and 251(1)(n) of the 1999 Constitution (as amended).
The Court held that the House of Representatives acted outside the scope of its constitutional investigative powers by directing the Plaintiff to pay ₦72,624,000,000.00 (Seventy-Two Billion, Six Hundred and Twenty-Four Million) as damages/compensation. The Court found that in doing so, the House assumed judicial powers constitutionally vested in the courts and thereby acted ultra vires the powers conferred on it under the Constitution of the Federal Republic of Nigeria, 1999 (as amended).
The judgment draws a firm line between the National Assembly's investigative powers and the judicial powers of the courts.
Source: Vanguard
