Litigation Update - June 2018

DO ADMINISTRATIVE AGENCIES LACK THE POWERS TO IMPOSE FINES AND PENALTIES WITHOUT RECOURSE TO THE COURTS? MATTERS ARISING

SHELL NIGERIA EXPLORATION AND PRODUCTION COMPANY LIMITED (SHELL) V. NATIONAL OIL SPILL DETECTION AND RESPONSE AGENCY (NOSDRA)

Background

We had last month reviewed the Court of Appeal's decision in NATIONAL OIL SPILL DETECTION AND RESPONSE AGENCY (NOSDRA) V. MOBIL PRODUCING NIGERIA UNLIMITED (EXXONMOBIL),¹ where it held that the imposition of fines by NOSDRA was contrary to its powers, on the basis that penalties or fines are imposed as punishment for an offence or violation of the law and the power as well as competence to establish that an offence has been committed belongs to the courts and not a regulatory agency.