Court Voids N72.6bn Compensation Directive Against Seplat

A Federal High Court in Lagos has set aside a directive 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 held that the National Assembly exceeded its constitutional powers, and the directive amounted to an unconstitutional usurpation of the judicial powers exclusively vested in courts of competent jurisdiction.

Details of the Judgment

Justice Allagoa, in a judgment delivered on Monday, granted all the reliefs sought by Seplat in Suit No. FHC/LAG/CS/862/2026. The court found that the directive by the House of Representatives Committee was beyond its constitutional authority and infringed upon the judicial powers vested in the courts.

Implications for Legislative Oversight

This ruling underscores the constitutional boundaries between the legislative and judicial branches of government. While the National Assembly has oversight functions, the court emphasized that it cannot assume judicial powers by directing compensation payments, which is a matter for the judiciary to determine.

Response from Seplat

Seplat Energy Producing Nigeria Unlimited welcomed the judgment, stating that it reaffirms the company's commitment to operating within the legal framework and upholding the rule of law. The company reiterated its dedication to environmental stewardship and community engagement, emphasizing that any claims or disputes should be resolved through the appropriate legal channels.

Broader Legal Context

This case highlights the importance of adhering to constitutional provisions regarding the separation of powers. It serves as a reminder to legislative bodies to exercise their oversight functions within the limits of their constitutional mandate and to avoid encroaching upon the jurisdiction of the judiciary.