A Federal High Court in Lagos has nullified a House of Representatives directive ordering Seplat Energy Producing Nigeria Unlimited (SEPNU) to pay N72.624 billion in compensation to communities over alleged oil spill incidents, ruling that the lawmakers exceeded their constitutional powers.

Justice Allagoa held that the National Assembly cannot determine civil liability or award compensation, as those powers are reserved exclusively for courts of competent jurisdiction under the 1999 Constitution.

The judgment followed a suit filed by Seplat challenging a November 2025 report by the House of Representatives, which found the company liable for alleged oil spill-related damages and directed it to pay compensation in installments to affected communities. The report also summoned the company’s Managing Director and Chief Executive Officer to appear before several House committees.

Seplat argued that the House acted outside its constitutional mandate by making findings on civil liability and awarding damages, powers that belong solely to the judiciary. No legal representative appeared for the House during the proceedings.

The court agreed with Seplat, ruling that while the House has investigative powers, it cannot adjudicate civil disputes or compel the payment of compensation. Justice Allagoa declared the House’s directive unconstitutional, null and void, and granted all the reliefs sought by the company.

The ruling reaffirmed that only courts with the appropriate jurisdiction have the authority to determine civil liability and award compensation in such cases.