A Federal High Court in Lagos has set aside a directive by the House of Representatives Committee ordering Seplat Energy Producing Nigeria Unlimited, to pay N72.624 billion as compensation to communities over alleged oil spill incidents, holding that the National Assembly exceeded its constitutional powers.

The court held that the directive amounted to an unconstitutional usurpation of the judicial powers exclusively vested in courts of competent jurisdiction.

Justice Allagoa, in a judgment delivered on Monday, granted all the reliefs sought by Seplat in Suit No. FHC/LAG/CS/862/2026, marked Seplat Energy Producing Nigeria Unlimited v. House of Representatives.

The company had challenged the House of Representatives’ report of November 14, 2025, which found it liable for alleged oil spill-related damages and directed it to pay N72.624 billion as compensation to affected communities.

According to court documents, the dispute arose from a letter dated November 14, 2025, issued by the Clerk to the National Assembly, conveying resolutions of the House directing Seplat to pay the compensation based on valuation reports relating to the alleged oil spill incidents.

The House also ordered that the compensation be paid in instalments and summoned the company’s Managing Director/Chief Executive Officer to appear before several committees of the House.

Seplat, through its counsel, Augustine Okafor, argued that the House lacked the constitutional authority to determine civil liability or award damages. The company contended that the report was unconstitutional because the determination of liability for alleged civil wrongs and the award of compensation are matters reserved exclusively for the courts under the provisions of the 1999 Constitution, as amended.

No legal representative appeared for the House of Representatives during the proceedings.

In its judgment, the court agreed with Seplat’s submissions, holding that the House exceeded the limits of its investigative powers by effectively adjudicating a civil dispute and directing the payment of compensation.

Justice Allagoa held that while the House of Representatives possesses investigative powers under the Constitution, those powers do not extend to determining civil liability or awarding damages against individuals or corporate entities.

The court consequently upheld all the constitutional questions raised in the originating summons and declared the House’s directive unconstitutional, null and void.

The judge also granted all the reliefs sought by Seplat, including the interpretation of Sections 4(1), 6(6)(b), 88(2) and 251(1)(n) of the 1999 Constitution (as amended), affirming that only courts of competent jurisdiction can determine civil liability and award compensation.