A Federal High Court has ruled that the National Assembly exceeded its constitutional authority by directing Seplat Energy Plc to pay N72.6 billion in compensation, declaring that lawmakers lacked the legal powers to issue such an order.
In its judgment, the court held that while the National Assembly possesses oversight responsibilities over government agencies and public institutions, it cannot exercise judicial powers or compel the payment of compensation outside the procedures established by law.
The dispute centred on a directive issued by the legislature ordering Seplat Energy to pay N72.6 billion in compensation, a move the company challenged as unconstitutional and beyond the powers of the National Assembly.
Delivering its decision, the court emphasised that the separation of powers enshrined in the Nigerian Constitution prevents the legislature from assuming the functions of the judiciary. It ruled that the determination and award of compensation remain matters exclusively within the jurisdiction of competent courts or other legally recognised dispute resolution mechanisms.
The judgment effectively nullifies the National Assembly’s directive, reaffirming the constitutional limits of legislative oversight and reinforcing the independence of the judiciary in resolving civil disputes.
The ruling is expected to have significant implications for the scope of parliamentary investigations and the extent of the National Assembly’s authority over private entities, particularly in matters involving financial liabilities and compensation claims.
Legal analysts say the decision underscores the principle that no arm of government may act outside the powers expressly granted by the Constitution, strengthening judicial oversight over disputes involving public institutions and private corporations.
