SERAP drags NNPCL to court over alleged N5.9bn rebranding expenditure, demands full disclosure

The Socio-Economic Rights and Accountability Project (SERAP) has instituted legal action against the Nigerian National Petroleum Company Limited (NNPCL), seeking judicial intervention to compel the oil company to account for an estimated ₦5.9 billion reportedly spent on the incorporation, transition, and rebranding of the former Nigerian National Petroleum Corporation (NNPC) into NNPCL.

The lawsuit, filed at the Federal High Court in Abuja under suit number FHC/ABJ/CS/1248/2026, challenges what SERAP describes as a lack of transparency surrounding the expenditure and seeks detailed information on how the funds were utilized.

According to reports cited by the organization, the former NNPC allegedly spent ₦2.9 billion from petroleum product proceeds on incorporation-related expenses, while the National Petroleum Investment Management Services (NAPIMS) reportedly charged another ₦2.9 billion to crude oil revenue for similar purposes. The combined expenditure is estimated at approximately ₦5.9 billion.

In the suit filed on its behalf by lawyers Oluwakemi Agunbiade, Kehinde Oyewumi, and Andrew Nwankwo, SERAP is requesting an order of mandamus compelling NNPCL to provide a comprehensive account of the expenditure.

Specifically, the organization is asking the court to direct the company to produce a detailed reconciliation statement outlining all financial transactions linked to the ₦5.9 billion expenditure. SERAP is also seeking disclosure of the identities of contractors involved in the rebranding process and a breakdown of the services rendered.

Furthermore, the group wants NNPCL to reveal the names and official positions of government officials who authorized and approved the release and spending of the funds. It is also requesting clarification on whether the expenditure complied with procurement regulations and due-process requirements.

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SERAP argued that the matter is of significant public interest, stressing that Nigerians have a right to know whether the expenditure represented value for money and whether public funds were spent lawfully.

“There ought to be full transparency and accountability regarding the reported ₦5.9 billion spent on rebranding NNPC to NNPCL,” the organization stated in court documents.

The rights group maintained that disclosure of the officials involved and the procedures followed in approving the expenditure would enable the public to assess whether the spending was properly authorized and undertaken in accordance with established legal and procurement frameworks.

SERAP further contended that the reported expenditure raises serious questions about accountability within NNPCL and reflects broader concerns regarding transparency in the management of public resources in Nigeria’s petroleum sector.

According to the organization, the company’s alleged refusal or failure to provide a detailed account of the spending undermines citizens’ constitutional and statutory rights to access information concerning the management of public funds.

The lawsuit also referenced concerns reportedly raised by the Senate Committee on Public Accounts, which questioned the justification for the ₦5.9 billion expenditure categorized as incorporation and transition costs incurred during the transformation of NNPC into NNPCL.

The committee reportedly described the spending as excessive and deserving of further explanation, investigation, and legislative scrutiny.

The transition of NNPC into NNPCL followed the enactment of the Petroleum Industry Act (PIA) 2021, which mandated the conversion of the state-owned oil corporation into a commercially oriented limited liability company wholly owned by the Federal Government.

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SERAP argued that the alleged expenditure may contravene constitutional provisions that require public institutions to promote transparency, accountability, and the prudent management of national resources.

The organization cited Sections 13, 15(5), and 16 of the 1999 Constitution, which mandate public institutions to uphold constitutional principles, eliminate corruption and abuse of power, and ensure that the nation’s resources are managed for the common good.

The suit also referenced Nigeria’s obligations under international instruments, including the United Nations Convention against Corruption and the African Charter on Human and Peoples’ Rights, both of which emphasize transparency, accountability, and the responsible management of public resources.

SERAP maintained that the alleged spending of ₦5.9 billion without adequate public explanation could amount to a breach of public trust and may violate both domestic anti-corruption laws and Nigeria’s international commitments.

As of the time of filing this report, no date has been fixed for the hearing of the case.