Politics
SERAP sues NNPCL over failure to account for N211tn in 2023
The Socio-Economic Rights and Accountability Project has dragged the Nigerian National Petroleum Company Limited (NNPCL) before the Federal High Court in Abuja over what it described as the company’s failure to explain and account for more than N211 trillion recorded in its 2023 audited financial statements under Sundry Receivables and Accrued Expenses.
The lawsuit, marked FHC/ABJ/CS/1427/2026, was filed last week and seeks the court order compelling NNPCL to disclose documents and provide a comprehensive explanation for the transactions totaling N211,015,245,000,000.
The development was disclosed in a statement issued on Sunday by SERAP’s Deputy Director, Kolawole Oluwadare, who explained that SERAP is asking the court to issue an order of mandamus directing NNPCL to account for its 2023 audited financial statements that recorded N107.6 trillion as Sundry Receivables and N103.4 trillion as Accrued Expenses without adequately identifying the debtors and creditors, explaining the legal basis for the transactions, or providing supporting documents to enable public scrutiny.
SERAP added that it is also seeking an order compelling the oil company to provide a detailed reconciliation of the N107.6 trillion recorded as sundry receivables, and the complete breakdown of the N103.4 trillion listed as accrued expenses.
In the suit, SERAP argued that there is an overriding public interest in disclosing the information, insisting that NNPCL has a legal duty to explain the transactions and demonstrate that the financial entries are accurate, lawful, and supported by credible documentation.
The orgsnisation argued that disclosure would promote transparency, prevent corruption, strengthen fiscal accountability, and enhance public oversight of NNPCL’s operations.
“Nigerians have the right to know who owes the ₦107.6 trillion, who is entitled to the ₦103.4 trillion in accrued expenses, the legal basis for the transactions, and whether the entries comply with applicable laws and public accountability standards,” it added.
The suit, filed by SERAP’s lawyers, Oluwakemi Agunbiade, Kehinde Oyewumi, Andrew Nwankwo, and Maryam Mumuni, explained that Sundry Receivables represent money NNPCL claims is owed to it by individuals, companies, or government entities, while Accrued Expenses represent liabilities for goods, services, or other obligations that have been incurred but remain unpaid.
“NNPCL’s failure to disclose the requested information undermines transparency, accountability and public confidence in the management of Nigeria’s oil wealth, prevents Nigerians from determining whether the transactions are lawful and properly documented,” SERAP said.
According to SERAP, although the two entries account for over N211 trillion in the company’s audited financial statements, the documents do not sufficiently disclose who owes the money, who is entitled to payment, or the legal basis for the transactions.
The orgsnisation argued that secrecy surrounding oil revenue management undermined the rule of law and is inconsistent with the Nigerian Constitution, the Fiscal Responsibility Act, Financial Regulations, and Nigeria’s obligations under international anti-corruption and human rights treaties.
No date has been fixed for the hearing of the suit.
The legal action comes amid sustained calls by civil society organisations for greater transparency in the operations of NNPCL since the implementation of the Petroleum Industry Act, with campaigners maintaining that the national oil company remains accountable to Nigerians for its management of public resources.
The ICIR reports that the legal action comes weeks after the Senate Committee on Public Accounts, on June 10, ordered the arrest of former Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mele Kyari, over his repeated failure to appear before the committee investigating an alleged N210 trillion discrepancy in the company’s audited financial records.
Recall that SERAP filed a lawsuit against the NNPCL in June over its failure to account for approximately N5.9 billion reportedly spent on the incorporation, transition, and rebranding of NNPC into NNPCL.
The NNPC reportedly paid N2.9 billion for incorporation expenses from petroleum product proceeds. At the same time, the National Petroleum Investment Management Services (NAPIMS) also charged N2.9 billion to crude oil revenue for the same purpose, bringing the total amount spent on the rebranding of NNPC to NNPCL to N5.9 billion.
Nanji is an investigative journalist with the ICIR. She has years of experience in reporting and broadcasting human angle stories, gender inequalities, minority stories, and human rights issues. She has documented sexual war crimes in armed conflict, sex for grades in Nigerian Universities, harmful traditional practices and human trafficking.