The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Nigerian National Petroleum Company Limited (NNPCL), accusing it of failing to explain the whereabouts of over ₦825 billion and $2.5 billion allocated for refinery repairs and oil revenues.
The suit, filed last Friday at the Federal High Court in Lagos (FHC/L/MISC/722/25), seeks to compel NNPCL to disclose, recover, and return the allegedly missing funds to the Federation Account. SERAP also asked the court to order NNPCL to identify those responsible and hand them over to anti-graft agencies for prosecution.
Audit Report Triggers Legal Action
The 2021 audit report by the Auditor-General of the Federation, published in November 2024, prompted the legal action. SERAP said the report revealed systemic financial mismanagement at NNPCL that violates the Constitution and Nigeria’s anti-corruption laws.
The group believes holding those responsible to account will help restore trust and ensure the recovery of public funds. It also argued that the alleged mismanagement has contributed to Nigeria’s rising deficit and ongoing poverty crisis.
Breakdown of Alleged Missing Funds
The audit report flagged several financial red flags:
- ₦82.95 billion was deducted from oil and gas sales for refinery repairs but remains unaccounted for.
- NNPCL deducted ₦343.64 billion from domestic crude sales for pipeline maintenance without explanation.
- ₦83.66 billion in joint venture income from 2016 to 2020 was withdrawn from a CBN account with no clear justification.
- ₦204.85 billion in oil royalties meant for the former DPR (now NUPRC) was deducted and not remitted.
- ₦3.74 billion was paid to a company over PMS shortfall sales, but auditors flagged it as potentially missing.
- ₦28.65 billion in bridging allowances from NNPC Retail in 2021 went unaccounted for.
- ₦13.56 billion in unpaid claims from three major marketers also remains unsettled.
- ₦15.22 billion in debts owed by 26 marketers was not recovered.
- $29.6 million in royalties, due to the CBN account, remains outstanding.
- NNPCL failed to collect $2.26 billion and ₦48.22 billion in royalties from oil companies in 2021.
SERAP claimed that the uncollected or diverted funds have undermined refinery rehabilitation and worsened economic inequality.
Dangote Adds Fuel to the Fire
The lawsuit came days after Dangote Group Chairman Aliko Dangote declared that NNPCL’s refineries may never function again, despite the $18 billion spent on them. SERAP cited his remarks as further evidence of deep-rooted mismanagement in the sector.
Awaiting the Court Date
Although the court has not fixed a hearing date, the suit is already drawing national attention. SERAP maintains that holding NNPCL accountable will strike a blow against impunity and help redirect lost revenues to projects that benefit ordinary Nigerians.