The Federal High Court sitting in Warri, Delta State, has dismissed a suit challenging key provisions of the Petroleum Industry Act (PIA) relating to host community liability, affirming the validity of the statutory framework governing Nigeria’s oil and gas sector.
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In a judgment delivered on December 12, 2025, the court struck out all the claims filed by the Incorporated Trustees of the Centre for Human Rights and Anti-Corruption Crusade (CHURAC), which sought to invalidate aspects of the PIA on constitutional and human rights grounds.
CHURAC had approached the court to challenge provisions of the PIA that impose liability on host communities for acts of vandalism and sabotage affecting petroleum infrastructure, arguing that such provisions were unconstitutional, discriminatory, and amounted to a denial of fair hearing.
At the hearing of the suit, Mrs B. E. Oghenekaro appeared as counsel for the plaintiff.
The Attorney-General of the Federation, listed as the 1st defendant, was represented by K. K. Akpule. Dr Abiodun Adesanya, alongside A. A. Affe, represented the President of the Nigerian Senate, the 2nd defendant. There was no appearance for the 3rd defendant.
The defendants had earlier raised a preliminary objection, contending that CHURAC lacked the requisite locus standi to institute the action in a representative capacity on behalf of host communities.
However, in its ruling, the court declined to uphold the objection, holding that the issue of locus standi did not bar it from considering the substantive issues raised in the suit.
Despite overruling the preliminary objection, the court proceeded to examine the plaintiff’s claims on their merits and ultimately found them lacking in substance.
In its judgment, the court held that the challenge to the host community liability provisions of the PIA was unfounded.
It ruled that the plaintiff failed to establish that the impugned sections of the Act were unconstitutional or discriminatory, or that they violated the right to fair hearing as alleged.
The court further held that the National Assembly acted within its legislative competence in enacting the Petroleum Industry Act and that the provisions complained of were part of a broader statutory framework aimed at balancing the interests of host communities, operators, and the Nigerian state.
Accordingly, the court dismissed all the reliefs sought by CHURAC in their entirety and affirmed the validity and enforceability of the relevant provisions of the PIA.
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