In a significant ruling for Nigeria's oil and gas sector, the Federal High Court sitting in Warri, Delta State, has dismissed a legal challenge against crucial sections of the Petroleum Industry Act (PIA). The court's decision affirms the statutory framework governing the industry, particularly regarding the responsibilities of host communities.
Court Rejects Challenge to PIA Provisions
The suit was filed by the Incorporated Trustees of the Centre for Human Rights and Anti-Corruption Crusade (CHURAC). The group sought to invalidate sections of the PIA that impose liability on host communities for acts of vandalism and sabotage affecting petroleum infrastructure within their areas.
CHURAC argued that these provisions were unconstitutional, discriminatory, and amounted to a denial of fair hearing. The case was heard before the court, with a judgment delivered on December 12, 2025.
Legal Proceedings and Key Arguments
During the hearings, Mrs B. E. Oghenekaro represented the plaintiff, CHURAC. The defendants, including the Attorney-General of the Federation and the President of the Nigerian Senate, were represented by K. K. Akpule and Dr Abiodun Adesanya alongside A. A. Affe, respectively. The third defendant did not make an appearance.
The defendants initially raised a preliminary objection, arguing that CHURAC lacked the requisite locus standi to bring the action in a representative capacity for host communities. However, the court overruled this objection, deciding it could proceed to examine the substantive issues of the case.
Judgment Upholds Legislative Competence
Despite allowing the case to be heard on its merits, the court ultimately found the plaintiff's claims to be without substance. In its ruling, the court held that CHURAC failed to prove that the challenged sections of the PIA were unconstitutional, discriminatory, or in violation of the right to a fair hearing.
The court further stated that the National Assembly acted within its legislative competence in enacting the Petroleum Industry Act. It ruled that the provisions in question are part of a broader statutory framework designed to balance the interests of host communities, oil and gas operators, and the Nigerian state.
Consequently, the court dismissed all the reliefs sought by CHURAC in their entirety. The judgment solidifies the validity and enforceability of the relevant PIA provisions concerning host community liability, marking a pivotal moment in the implementation of Nigeria's landmark oil sector reform.
