Court Upholds Host Community Liability Provisions in Petroleum Industry Act
The Federal High Court sitting in Warri, Delta State, has dismissed a constitutional challenge to provisions of the Petroleum Industry Act (PIA) that impose liability on host communities for acts of vandalism and sabotage affecting petroleum infrastructure.
Delivering judgment on 12 December 2025, Justice Hyeladzira Nganjiwa rejected all claims filed by the Incorporated Trustees of the Centre for Human Rights and Anti‑Corruption Crusade (CHURAC), which sought to nullify the provisions on grounds of unconstitutionality, discrimination, and violation of the right to fair hearing.
The Plaintiff, CHURAC, was represented by Mrs. B. E. Oghenekaro. The Attorney‑General of the Federation the first defendant was represented by K. K. Akpule while President of the Nigerian Senate waa represented by Dr. Abiodun Adesanya and A. A. Affe. Third defendant unrepresented.
The defendants initially argued that CHURAC lacked locus standi to institute the action on behalf of host communities. The court overruled this objection, holding that questions of standing would not prevent it from considering the substantive constitutional issues.
On the merits, Justice Nganjiwa held that CHURAC failed to substantiate its claims that the contested provisions were unconstitutional, discriminatory, or violated fair hearing rights.
The Court further affirmed that the National Assembly acted within its legislative competence in enacting the PIA and that the host community liability provisions form part of a broader statutory framework designed to balance the interests of host communities, petroleum operators, and the Nigerian state.
The court dismissed all reliefs sought by CHURAC and affirmed the validity and enforceability of the host community liability provisions under the PIA.
