The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Nigerian National Petroleum Company Limited (NNPCL), accusing it of failing to explain the disappearance of ₦500 billion in oil income.
The suit was lodged last Friday at the Federal High Court in Lagos after the World Bank disclosed that, out of ₦1.1 trillion earned by NNPCL through crude oil sales and other streams in 2024, only ₦600 billion had been transferred to the Federation Account. The remaining ₦500 billion has not been accounted for.
Following a Freedom of Information (FoI) request submitted by SERAP to NNPCL, the company’s legal team, Afe Babalola & Co, responded by asserting that the FoI Act does not extend to NNPCL.
However, SERAP is now seeking a court order that would compel the company to publicly disclose the status of the missing funds and facilitate an investigation by appropriate anti-corruption bodies to trace, recover, and prosecute any individuals involved.
SERAP’s request includes “an order of mandamus to compel the NNPCL to explain and account for the ₦500 billion reportedly missing between October and December 2024.”
In court documents, SERAP maintained that the NNPCL must operate in accordance with Nigeria’s Constitution, the FoI Act, and its international obligations related to human rights and anti-corruption practices.
According to the group, the loss of these funds has added pressure to Nigeria’s already struggling economy and has increased reliance on borrowing to sustain governance, worsening the national debt profile.
“The failure to remit the full oil earnings signals deeper issues within the NNPCL’s transparency structure and highlights its consistent disregard for accountability,” the group stated.
SERAP also referenced a recent Supreme Court verdict which reaffirmed that the FoI Act applies to all public entities, including the NNPCL.
The case, initiated by lawyers Kolawole Oluwadare, Oluwakemi Oni, and Valentina Adegoke on behalf of SERAP, asserts: “Nigerians continue to suffer the consequences of vanished public resources that were meant for development.”
The suit argues: “There is overwhelming public interest in uncovering these financial details. The NNPCL is legally obligated to explain how the funds went missing.”
“The nation’s oil wealth must benefit all Nigerians, both now and in the future.”
“If the missing ₦500 billion is not recovered and added to the Federation Account, the country’s economic challenges may worsen, denying citizens vital public services.”
“Nigerians deserve transparency on why NNPCL did not transfer savings from fuel subsidy removal and why state and local governments are being denied their statutory allocations, contrary to the Constitution.”
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SERAP described the company’s actions as a betrayal of public trust and a violation of both national laws and international anti-corruption treaties.
It further noted that despite Nigeria’s vast oil wealth, the majority of citizens remain impoverished, largely due to chronic corruption and systemic impunity.
The organisation stated that restoring accountability in the oil sector could significantly improve the delivery of public services, reduce poverty, and enable the government to meet its obligations under both national and international law.
“Nigerians have the right to be informed about how their national resources are spent. This is a fundamental principle under the Constitution, FoI Act, and other international commitments.”
The group also pointed out that both the Auditor-General and the Nigeria Extractive Industries Transparency Initiative (NEITI) have previously raised alarms about financial discrepancies in NNPCL’s accounts.
Reiterating the World Bank’s disclosure, SERAP said: “Only ₦600 billion of the ₦1.1 trillion earned in 2024 was remitted by NNPCL, leaving ₦500 billion unaccounted for.”
“The money should have been deposited into the Federation Account and shared among federal, state, and local governments. Instead, it is missing.”
“Section 15(5) of the Nigerian Constitution obliges public institutions to eliminate corruption and abuse of power,” the group emphasised.
“Section 13 also mandates NNPCL to comply with the principles outlined in Chapter 2 of the Constitution.”
“Nigeria’s ratification of the UN Convention against Corruption also legally binds NNPCL to act transparently in handling public resources,” it added.
According to SERAP, the ongoing cost of living crisis has worsened because of the disappearance of these funds, depriving millions of essential services.
“If the ₦500 billion had been properly accounted for and remitted, it could have significantly improved funding for health, education, and infrastructure,” the statement continued.
SERAP further insisted that Nigerians are entitled to information on the matter, citing Section 39 of the Constitution, Article 9 of the African Charter on Human and Peoples’ Rights, and Article 19 of the International Covenant on Civil and Political Rights.
As at press time, the court has yet to assign a hearing date for the case.