The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Nigerian National Petroleum Company Limited (NNPCL) over its alleged failure to account for ₦825 billion and $2.5 billion meant for refinery rehabilitation and other oil revenues.
The suit, filed at the Federal High Court in Lagos and marked FHC/L/MISC/722/25, follows revelations in the 2021 audited report by the Auditor-General of the Federation, published on 27 November 2024.
The report accused the NNPCL of failing to explain the whereabouts of vast sums earmarked for refinery repairs, a claim further compounded by recent remarks from business mogul Aliko Dangote, who stated that the refineries may never work again despite $18 billion already spent.
In the suit, SERAP is asking the court to issue an order of mandamus compelling the NNPCL to account for and explain the missing funds. The group also wants the court to mandate the recovery and remittance of the allegedly diverted monies into the Federation Account.
Furthermore, SERAP seeks a court directive requiring the NNPCL to identify those responsible for the missing funds, surcharge them accordingly, and hand them over to anti-corruption agencies for investigation and prosecution.
SERAP maintains that the allegations amount to a gross violation of the public trust and the Nigerian Constitution, as well as national and international anti-corruption laws.
The organisation argues that granting the reliefs sought would deal a blow to impunity, help ensure justice for Nigerians, and assist in the recovery of crucial public funds urgently needed to rehabilitate the country’s dysfunctional refineries.
According to SERAP, the Auditor-General’s findings point to a systemic failure in NNPCL’s accountability framework.
The group highlighted concerns that the missing oil revenue has undermined Nigeria’s economic development, worsened poverty levels, and led to increased government borrowing.
The 2021 audit report, referenced in SERAP’s suit, detailed a series of financial irregularities. These include the unexplained deduction of ₦82.95 billion from crude oil and gas sales, ₦343.6 billion from domestic crude sales purportedly for pipeline maintenance, and ₦83.6 billion in miscellaneous income from NNPC joint ventures.
Additional concerns were raised over ₦204.8 billion in unjustified deductions from oil royalties, ₦3.7 billion allegedly paid to a company as a shortfall on PMS cargo sales, and ₦28.6 billion in outstanding bridging allowance from NNPC retail.
Other sums cited in the report include ₦13.5 billion in unpaid claims from major oil marketers, ₦15.2 billion owed by 26 marketers, and $29.6 million in unpaid royalties to the Department of Petroleum Resources. The NNPCL also reportedly failed to collect over $2.2 billion and ₦48.2 billion in outstanding oil royalties from oil companies.
The Auditor-General warned that these financial lapses may have significantly affected the funding of the 2021 national budget and called for full recovery of the missing funds.
He also recommended that suspects be handed over to relevant agencies such as the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC).
The suit was filed on behalf of SERAP by its lawyers, Kolawole Oluwadare, Oluwakemi Oni, and Valentina Adegoke. No date has yet been set for the hearing.