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 N825 billion and $2.5 billion in public funds earmarked for refinery rehabilitation and other oil-related revenues.
The lawsuit was confirmed in a statement issued Sunday by SERAP’s Deputy Director, Kolawole Oluwadare.
According to SERAP, the suit follows damning revelations in the 2021 audited report by the Auditor-General of the Federation, Adolphus Aghughu, which was released on November 27, 2024. The report highlights widespread financial discrepancies and unaccounted oil revenues linked to NNPCL operations.
In suit number FHC/L/MISC/722/25, filed last Friday at the Federal High Court in Lagos, SERAP is seeking an order of mandamus to compel NNPCL to account for the alleged missing N825 billion and $2.5 billion, recover and remit the funds to the Federation Account, identify and hold accountable those responsible for the missing funds, and refer suspects to appropriate anti-corruption agencies for investigation and prosecution.
SERAP’s legal action also follows recent remarks by Dangote Group President, Aliko Dangote, who stated that NNPCL’s refineries may never function again, despite the reported $18 billion spent on their rehabilitation.
The 2021 audit report raises several red flags. Among the allegations, over N82.9 billion was deducted from crude oil and gas sales between 2020 and 2021 for refinery repairs, but remains unaccounted for. Similarly, N343.6 billion was deducted from domestic crude sales for pipeline maintenance, with no clear explanation for its use or location. Another N83.6 billion, categorized as miscellaneous income from NNPC joint venture operations between 2016 and 2020, was withdrawn from the CBN/NNPC sinking fund account without proper justification.
The Auditor-General also reported that N204.8 billion was unjustifiably deducted from oil royalties due to the now-defunct Department of Petroleum Resources (DPR), now operating as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). An additional N3.7 billion, reportedly paid to a company as a shortfall on the sale of PMS cargo, was flagged as potentially missing. The report further indicated that N28.6 billion in bridging allowances from NNPC Retail and N13.5 billion in similar claims from three major oil marketers remained outstanding and unrecovered.
In total, the NNPCL also failed to recover over N15 billion owed by 26 oil marketers in 2021. The Auditor-General fears this may have contributed to funding shortfalls in the 2021 federal budget.
On the foreign exchange side, over $29.6 million in outstanding royalties was not paid into the DPR’s CBN account, raising additional concerns about transparency. Moreover, NNPCL failed to collect more than $2.2 billion and another N48.2 billion in oil royalties owed by various oil companies. The Auditor-General warned that these missing funds may have negatively impacted Nigeria’s fiscal stability and recommended their immediate recovery and remittance to the Federation Account.
SERAP argued in its court filing that the alleged financial irregularities reflect a systemic failure of transparency and accountability within the NNPCL. The organization stated that holding the NNPCL accountable is critical to restoring public trust and protecting Nigeria’s oil wealth.
“These grim allegations undermine economic development, trap millions of Nigerians in poverty, and contribute to high levels of deficit spending,” SERAP said. “The vast majority of Nigerians have seen little benefit from the country’s oil wealth.”
The suit was filed by SERAP’s legal team: Kolawole Oluwadare, Oluwakemi Oni, and Valentina Adegoke. No date has been set for the hearing.
