The Socio-Economic Rights and Accountability Project (SERAP) has initiated legal action against the Nigerian National Petroleum Company Limited (NNPCL), accusing it of failing to account for N500 billion in oil revenue reportedly withheld from the Federation Account between October and December 2024.
This lawsuit was prompted by a recent World Bank disclosure, which revealed that of the N1.1 trillion generated from oil sales and other sources in 2024, NNPCL only transferred N600 billion to the Federation Account, leaving a shortfall of N500 billion.
When SERAP submitted a Freedom of Information (FoI) request, NNPCL—through its legal representatives, Afe Babalola & Co.—noted that the FOI Act was inapplicable to its operations.
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Nevertheless, in suit number FHC/L/MSC/553/2025, filed last Friday at the Federal High Court in Lagos, SERAP is seeking a mandamus order compelling the NNPCL to provide details on the missing funds and remit them to the appropriate government account.
Additionally, the organisation is asking the court to compel NNPCL to engage anti-corruption agencies to trace, recover, and remit the missing amount.
SERAP also wants those allegedly responsible to be identified, surcharged, and handed over for investigation and prosecution.
Filed by Kolawole Oluwadare, Oluwakemi Oni, and Valentina Adegoke, SERAP’s legal action argues that NNPCL is constitutionally and legally obligated to operate transparently and in compliance with both national laws and international anti-corruption and human rights frameworks.
The organisation claims that the unaccounted oil funds have worsened Nigeria’s economic instability, widened the fiscal deficit, and contributed to the nation’s rising debt burden.
According to SERAP, the missing sum is indicative of systemic failures in accountability and transparency within NNPCL.
Referencing a recent Supreme Court judgment, SERAP highlighted that the FOI Act applies to all public records, including those maintained by NNPCL.
It insisted that Nigerians deserve full disclosure regarding public funds, especially those earmarked for national development.
The organisation warned that unless the missing N500 billion is recovered and disbursed appropriately, the nation’s economic woes could deepen, and the populace would continue to suffer from inadequate access to essential services.
SERAP maintained that citizens have a right to know why proceeds from fuel subsidy removal were not deposited into the Federation Account and why NNPCL has allegedly withheld funds meant for distribution to state and local governments in violation of constitutional provisions.
Describing the alleged actions as a serious breach of trust and legal norms, SERAP stated that the mismanagement of Nigeria’s oil revenue has long deprived citizens of meaningful benefits, largely due to entrenched corruption and lack of accountability.
The organisation argued that stamping out graft in the oil sector would help alleviate poverty, improve public service delivery, and ensure Nigeria meets its obligations under both domestic and international law.
It emphasised that transparency laws, such as the FoI Act and constitutional guarantees, give Nigerians the right to scrutinise the handling of public resources.
SERAP recalled that both the Auditor-General and the Nigeria Extractive Industries Transparency Initiative (NEITI) have for years reported similar cases of oil revenue discrepancies involving NNPCL.
Reiterating the World Bank’s recent claim, the organisation stressed that the N500 billion shortfall from 2024 was meant to be shared among all tiers of government but was not remitted as required.
SERAP cited constitutional provisions—specifically Sections 13 and 15(5)—which obligate public institutions to uphold anti-corruption principles and constitutional directives.
It also pointed to Nigeria’s commitment to the UN Convention against Corruption, particularly Articles 5 and 9, which stress the importance of prudent public finance management.
The organisation stated that the failure to account for the funds has undermined Nigerians’ rights to social and economic welfare, especially during a time of soaring living costs.
According to SERAP, had the NNPCL remitted the funds, they could have supported critical public services.
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SERAP stated that the Nigerian Constitution, the FoI Act, and international human rights treaties—including the African Charter on Human and Peoples’ Rights and the International Covenant on Civil and Political Rights—affirm the public’s right to information on how oil revenue is utilised.
As of press time, the court has yet to fix a date for hearing the case.
