Federal Court invalidates House of Representatives’ N72.6bn compensation order against Seplat

A Federal High Court has overturned a legislative order requiring Seplat Energy to pay N72.6 billion, ruling that the House of Representatives exceeded its constitutional authority by attempting to exercise judicial powers.

A Federal High Court in Lagos has nullified a House of Representatives committee directive that required Seplat Energy Producing Nigeria Unlimited to pay N72.624 billion in damages to local communities. The court ruled that the legislative body acted outside its constitutional mandate.

Justice Allagoa delivered the ruling on Monday in response to a lawsuit filed by Seplat. The energy company challenged a November 2025 report from the House that held them responsible for oil spill damages and ordered the multi-billion naira payment. The company argued that the legislature overstepped its bounds by acting as a judge in a civil dispute.

Represented by Augustine Okafor, Seplat maintained that assessing civil liability and awarding financial compensation are functions strictly reserved for the judiciary under the 1999 Constitution. During the proceedings, the House of Representatives did not provide any legal counsel to defend its position.

The court agreed with the plaintiff, clarifying that while the National Assembly maintains investigative authority, it lacks the power to adjudicate private legal matters or enforce compensation payments. Consequently, the court declared the House’s directive unconstitutional, null, and void, effectively granting all of Seplat’s requested legal reliefs.

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