ANALYSING THE POWERS OF ADMINISTRATIVE AGENCIES TO IMPOSE FINES: A REVIEW OF THE COURT OF APPEAL’S DECISION IN NOSDRA V. EXXON MOBIL

Abstract

The power of administrative agencies to impose fines as a regulatory measure has received much attention in recent times. The court has been viewed as the only constitutional institution that can impose fines as a form of punishment. However, an agency such as the National Oil Spill Detection and Response Agency (NOSDRA) is empowered to impose fines in accordance with its enabling Act. This means that its activities and decisions are firmly backed by law. This paper is a bold attempt to resolve the debate as to the constitutionality or legality of fines imposed by an administrative agency without recourse to courts in Nigeria. The paper reviewed the Court of Appeal’s decision in NOSDRA V. Exxon Mobil where the Court of Appeal upheld the decision of the trial court stating that the power as well as competence to impose fines belong to the courts, and the Appellant is not clothed with the power to properly exercise that function. It was necessary to review the instant case to point out the challenges of limiting the powers administrative agencies to impose civil fines. It further discusses the importance of administrative agencies, their powers to impose sanctions, the need for administrative agencies to have established Tribunals for internal dispute resolution, and the sacrosanct doctrine of fair hearing which the Trial and Appellate court built their decision on in the case under review. This paper finds that the decision of the Court of Appeal is not at par with the practice in other jurisdictions where summary action procedures are employed to facilitate the process of justice without congesting the courts. The paper recommends that a distinction must be made between civil fines imposed by administrative agencies and criminal monetary sanctions imposed by the courts. The paper concludes by highlighting the advantages prevalent in allowing these agencies to perform their functions as stipulated by their enabling laws without it being viewed as derogation to the powers of the court.