Court affirms constitutionality of PIA provisions imposing liability on host communities

The Federal High Court sitting in Warri, Delta State, has upheld key provisions of the Petroleum Industry Act (PIA) that impose liability on host communities for acts of vandalism and sabotage affecting petroleum infrastructure.

In a judgment delivered on December 12, 2025, Justice Hyeladzira Nganjiwa dismissed a suit filed by the Incorporated Trustees of the Centre for Human Rights and Anti-Corruption Crusade (CHURAC), which sought to nullify the contested provisions on constitutional and human rights grounds.

CHURAC had challenged sections of the PIA that hold host communities accountable for damage to oil and gas facilities within their areas, arguing that the provisions were unconstitutional, discriminatory and in violation of the right to fair hearing. The organisation was represented in court by Mrs B. E. Oghenekaro.

The Attorney-General of the Federation, listed as the first defendant, was represented by K. K. Akpule, while Dr Abiodun Adesanya and A. A. Affe appeared for the second defendant, the President of the Nigerian Senate. No appearance was entered for the third defendant.

At the preliminary stage, the defendants raised an objection, contending that CHURAC lacked the requisite locus standi to institute the suit on behalf of host communities. The court, however, overruled the objection, holding that the issue of standing would not bar it from determining the substantive questions raised in the case.

On the merits, Justice Nganjiwa found that CHURAC failed to substantiate its claims. The court held that the plaintiff did not demonstrate how the impugned provisions of the PIA violated the Constitution, were discriminatory, or breached the right to fair hearing.

The judge further ruled that the National Assembly acted within its legislative competence in enacting the Petroleum Industry Act, noting that the host community liability provisions are part of a broader statutory framework intended to balance the interests of host communities, petroleum operators and the Nigerian state.

Accordingly, the court dismissed all the reliefs sought by CHURAC and affirmed the validity and enforceability of the relevant provisions of the Petroleum Industry Act.