SERAP drags NNPCL to court over alleged N500bn missing oil revenue

The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Nigerian National Petroleum Company Limited (NNPCL) at the Federal High Court in Lagos, seeking to compel the state-owned oil company to account for an alleged N500 billion shortfall in oil revenue remittance to the Federation Account.

The legal action, marked Suit No. FHC/L/MSC/553/2025, was filed last Friday, following NNPCL’s alleged failure to remit the full revenue generated from crude oil sales between October and December 2024. SERAP announced the lawsuit via its official handle on X (formerly Twitter) on Sunday, describing it as a critical move to ensure transparency and accountability in Nigeria’s oil sector.

“We’ve sued the NNPCL over the failure to account for the missing N500 billion oil money, which the NNPCL failed to remit to the Federation Account in 2024, and the claim that the Freedom of Information Act does not apply to it,” the organization stated.

SERAP argues that NNPCL, despite its incorporation as a limited liability company under the Petroleum Industry Act (PIA), remains bound by the Nigerian Constitution, the Freedom of Information (FOI) Act, and Nigeria’s obligations under international anti-corruption treaties.

“The NNPCL has a responsibility to comply with the Nigerian Constitution 1999 [as amended], the Freedom of Information Act, and the country’s international human rights and anticorruption obligations in the exercise of its statutory functions,” SERAP asserted.

The organization also cited a recent Supreme Court ruling, which affirmed that the Freedom of Information Act applies to all public records, including those held by the NNPCL.

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In its filings, SERAP emphasized the damaging economic implications of the unaccounted oil revenue, arguing that the missing N500 billion has deepened Nigeria’s fiscal challenges, widened budget deficits, and contributed to the country’s ballooning debt crisis.

“The missing oil revenue reflects a failure of NNPCL accountability more generally and is directly linked to the institution’s continuing failure to uphold the principles of transparency and accountability,” SERAP stated.

Earlier in May 2025, SERAP had written to NNPCL’s Group Chief Executive Officer, Mr. Bayo Bashir Ojulari, demanding an explanation for the missing funds.

In a Freedom of Information request dated May 17, 2025, and signed by SERAP’s Deputy Director, Kolawole Oluwadare, the organization insisted that there was legitimate public interest in disclosing how the oil revenue was used.

“Nigeria’s oil wealth should benefit its people — both present and future generations,” the FOI letter read. “Nigerians have a right to know why NNPCL failed to remit the subsidy savings and why states and local governments are being allegedly denied their rightful allocations.”

The lawsuit comes amid warnings from international financial institutions. According to the World Bank’s 2025 Nigeria Development Update, NNPCL generated N1.1 trillion in 2024 from crude oil sales and related income but remitted only N600 billion, leaving a shortfall of N500 billion.

The International Monetary Fund (IMF) has also recently urged the Nigerian government to ensure that the financial savings from the removal of petrol subsidies are transparently managed and reflected in the national budget.

The missing revenue controversy follows President Bola Tinubu’s 2023 decision to remove the long-standing petrol subsidy. While the move received praise from global financial bodies and was expected to save billions annually, it also resulted in sharp increases in fuel prices and widespread economic hardship.

The current lawsuit by SERAP signals growing concern over the management of subsidy savings and the governance practices of NNPCL, which, despite restructuring, remains central to Nigeria’s oil revenue generation and fiscal stability.

The Federal High Court is expected to schedule a hearing date in the coming weeks. Meanwhile, SERAP has reiterated its demand for full disclosure, accountability, and immediate recovery of the allegedly missing N500 billion, warning that failure to act would continue to erode public trust and deepen Nigeria’s economic woes.