SERAP sues NNPCL over alleged missing N825bn, $2.5bn meant

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 a staggering N825 billion and $2.5 billion reportedly earmarked for refinery rehabilitation and other oil-related expenditures.

The legal action follows revelations contained in the 2021 audited report of the Auditor-General of the Federation, made public on November 27, 2024. The report raises grave concerns over widespread financial irregularities within the NNPCL.

Just last week, industrialist Aliko Dangote echoed similar concerns, stating that the NNPCL refineries may never function again, despite the reported $18 billion already spent on them.

In the suit marked FHC/L/MISC/722/25 and filed last Friday at the Federal High Court, Lagos, SERAP is seeking a court order of mandamus compelling the NNPCL to account for and explain the whereabouts of the missing funds. The organization is also urging the court to direct the NNPCL to recover the funds and remit them to the Federation Account.

Furthermore, SERAP is asking the court to order the NNPCL to identify and sanction those responsible for the disappearance of the public funds and hand them over to anti-corruption agencies such as the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) for prosecution.

SERAP’s application, filed by lawyers Kolawole Oluwadare, Oluwakemi Oni, and Valentina Adegoke, underscores what it describes as “a grave breach of public trust” and a violation of Nigeria’s constitutional, legal, and international anti-corruption obligations.

“The grim allegations by the Auditor-General and Mr. Dangote suggest a systemic failure in transparency and accountability within NNPCL and a betrayal of the Nigerian people, especially considering the persistent dysfunction of the nation’s refineries,” the suit reads.

READ ALSO: ‘Account for security votes spending, invite EFCC, ICPC’, SERAP tells 36 governors

Citing multiple instances of financial discrepancies, the Auditor-General’s report noted that:

Over N82.95 billion was unaccounted for, allegedly deducted from crude oil and gas sales between 2020 and 2021 for refinery repairs.

N343.6 billion in domestic crude sale proceeds were diverted for pipeline maintenance and management without due process.

N83.6 billion in miscellaneous income from NNPC joint venture operations was withdrawn from the CBN/NNPC sinking fund account without adequate documentation.

N204.85 billion was reportedly deducted unjustifiably from oil royalties meant for the Department of Petroleum Resources (now NUPRC).

N3.75 billion allegedly paid as a shortfall for PMS cargo sales was not accounted for.

N28.65 billion in outstanding bridging allowances from NNPC Retail for 2021 was not explained.

N13.55 billion in unpaid bridging claims by major oil marketers was left unrecovered.

N15.2 billion owed by 26 marketers remained uncollected.

$29.6 million in unpaid royalties to the DPR was outstanding.

Over $2.26 billion and N48.2 billion in oil royalties from oil companies were not collected.

The Auditor-General warned that these missing funds may have contributed to difficulties in funding the national budget and deepened Nigeria’s reliance on debt.

According to SERAP, these issues have significantly undermined economic development, exacerbated poverty, and denied millions of Nigerians the benefits of the country’s vast oil wealth.

“No date has been set for the hearing of the suit,” SERAP stated.

The case marks another chapter in SERAP’s persistent campaign for greater transparency in Nigeria’s oil and gas sector, especially concerning the long-troubled refinery rehabilitation programme, which continues to consume public resources with little of show for it.