What really happened to ₦5.9bn? SERAP drags NNPCL to Court

Kazeem Ugbodaga

The Socio-Economic Rights and Accountability Project (SERAP) has instituted legal action against the Nigerian National Petroleum Company Limited (NNPCL), seeking judicial intervention to compel the state-owned oil company to account for an alleged ₦5.9 billion spent on its incorporation, transition and rebranding from the Nigerian National Petroleum Corporation (NNPC) to NNPCL.

The lawsuit, filed at the Federal High Court in Abuja and marked FHC/ABJ/CS/1248/2026, seeks an order compelling NNPCL to provide a detailed account of how the funds were expended and whether due process was followed in approving the expenditure.

According to SERAP, the amount in question comprises ₦2.9 billion reportedly paid by NNPC as incorporation expenses from petroleum product proceeds and another ₦2.9 billion allegedly charged by the National Petroleum Investment Management Services (NAPIMS) to crude oil revenues for the transition process.

The organisation is asking the court to direct NNPCL to provide a comprehensive reconciliation statement detailing all financial transactions linked to the expenditure, including the identities of contractors involved and the specific services rendered.

SERAP is also seeking an order compelling the company to disclose the names and official positions of government officials who authorised and approved the release of the funds, as well as evidence showing compliance with procurement laws and due-process requirements.

In the suit, the rights group argued that Nigerians have a legitimate interest in understanding how public resources were utilised during the transformation of NNPC into NNPCL under the Petroleum Industry Act (PIA) 2021.

“There is a legitimate public interest in the disclosure of the details sought. The NNPCL has a legal responsibility to explain whether the ₦5.9 billion expenditure represents value for money, constitutes lawful spending of public funds and complies with applicable due-process requirements,” SERAP stated.

The organisation maintained that transparency and accountability are essential in the management of public resources, particularly within the petroleum sector, which remains a major source of national revenue.

According to SERAP, the public has a right to know who approved the expenditure, who received the funds, the nature of the services provided and whether all relevant procurement regulations were strictly observed.

The group further argued that failure by NNPCL to provide a detailed account of the spending undermines public access to information and raises concerns about accountability in the management of public funds.

SERAP also cited concerns reportedly raised by the Senate Committee on Public Accounts, which questioned the scale of the expenditure and called for further explanation, investigation and legislative scrutiny.

“The alleged spending of the ₦5.9 billion suggests a grave violation of public trust and the provisions of the Nigerian Constitution, anti-corruption laws and Nigeria’s international obligations,” the organisation said.

It added that the expenditure warrants full public disclosure given its size and the significance of the petroleum sector to the country’s economy.

The transformation of NNPC into NNPCL followed the enactment of the Petroleum Industry Act in 2021, which required the national oil corporation to become a commercially driven limited liability company wholly owned by the Federal Government.

SERAP argued that constitutional provisions, anti-corruption obligations and international treaties to which Nigeria is a signatory require public institutions to ensure transparency, accountability and prudent management of public resources.

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