SERAP sues NNPCL over alleged failure to account for ₦211tn in oil funds

The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Nigerian National Petroleum Company Limited (NNPCL), seeking a court order compelling the company to account for ₦211 trillion recorded in its 2023 audited financial statements as “Sundry Receivables” and “Accrued Expenses.”

 

The suit, filed at the Federal High Court in Abuja, alleges that the NNPCL failed to adequately explain the transactions or provide sufficient information to enable public scrutiny of the funds.

 

According to a statement by SERAP’s Deputy Director, Kolawole Oluwadare, the organisation is asking the court to compel the NNPCL to disclose all documents and information relating to the transactions contained in its 2023 audited financial statements.

 

In the suit marked FHC/ABJ/IC/1427/2026, SERAP is specifically requesting an order directing the NNPCL to provide a detailed explanation of the ₦107.6 trillion recorded as Sundry Receivables, including the identities of debtors, amounts owed, the legal basis for the receivables and the status of recovery efforts.

 

The organisation is also seeking a breakdown of the ₦103.4 trillion listed as Accrued Expenses, including the identities of creditors and beneficiaries, the nature and legal basis of the liabilities, and supporting documents establishing their legitimacy.

 

SERAP argued that there is an overriding public interest in the disclosure of the information.

 

“The NNPCL has a legal duty to explain and account for the ₦211 trillion and demonstrate that the entries are accurate, lawful and supported by credible documentation,” the organisation said.

 

It maintained that the Freedom of Information Act and the African Charter on Human and Peoples’ Rights guarantee Nigerians the right to access information held by public institutions.

 

According to SERAP, Nigerians are entitled to know who owes the ₦107.6 trillion, who is entitled to the ₦103.4 trillion in accrued expenses, and whether the transactions comply with applicable laws and public accountability standards.

 

The organisation further argued that Sundry Receivables represent money the NNPCL claims is owed to it but has not yet received, while Accrued Expenses are liabilities incurred but not yet paid.

 

It contended that the financial statements do not adequately identify the parties involved or provide sufficient documentation to justify the transactions.

 

SERAP also maintained that the NNPCL remains subject to the Freedom of Information Act despite its status under the Petroleum Industry Act because it is wholly owned by the Federal Government and manages Nigeria’s petroleum resources on behalf of the federation.

 

“The funds managed by NNPCL are public funds, regardless of the company’s corporate status, because they are derived from Nigeria’s petroleum resources, which belong to the Federation,” SERAP said.

 

The organisation added that the NNPCL failed to respond to its earlier Freedom of Information request within the period stipulated by law, describing the silence as a refusal that justified legal action.

 

SERAP argued that greater transparency in the management of Nigeria’s oil revenues is necessary to strengthen accountability, combat corruption and ensure that public resources are used for the benefit of Nigerians.

 

No date has been fixed for the hearing of the suit.