SERAP drags NNPC to court over unaccounted ₦500bn oil revenue

The Socio-Economic Rights and Accountability Project, SERAP, has sued the Nigerian National Petroleum Company Limited over failure to account for N500bn oil revenue.

SERAP in the suit claimed that the NNPCL failed to remit the said amount to the Federation Account between October 2024 and December 2024.

In a statement signed by the Deputy Director, Kolawole Oluwadare, on Sunday, SERAP recalled the recent allegations by the World Bank that out of the N1.1 trillion revenue from crude sales and other income in 2024, maintaining that the NNPCL only remitted N600bn, leaving a deficit of N500bn unaccounted for.

In response to SERAP’s Freedom of Information (FoI) request, the NNPCL had claimed through its lawyers Afe Babalola and Co that the FoI Act does not apply to it.

But in the suit number FHC/L/MSC/553/2025 filed last Friday at the Federal High Court in Lagos, SERAP is seeking: “an order of mandamus to direct and compel the NNPCL to account for the alleged missing N500 billion, which it allegedly failed to remit to the Federation Account between October 2024 and December 2024,” the statement read.

SERAP said it is also seeking the court to “direct and compel the NNPCL to invite appropriate anticorruption agencies to investigate the spending and whereabouts of the said N500 billion and to ensure the prompt recovery and remittance of the money to the Federation Account.

“SERAP is also asking the court to ‘direct and compel the NNPCL to identify those suspected to be responsible for the alleged missing oil funds, surcharge them for the full amount involved, and hand them over to appropriate anticorruption agencies for investigation and prosecution.”

In the suit, SERAP is arguing that: “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 is also arguing that, “The missing oil revenues have further damaged the already precarious economy in the country and contributed to high levels of deficit spending by the government and the country’s crippling debt crisis.”

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

“SERAP is also arguing that, “the Supreme Court in a groundbreaking judgment recently declared that the Freedom of Information Act is applicable and applies to the public records in the Federation, including those kept by the NNPCL.”

“The suit filed on behalf of SERAP by its lawyers, Kolawole Oluwadare, Ms Oluwakemi Oni, and Ms Valentina Adegoke, read in part: “Nigerians continue to bear the brunt of these missing public funds from the NNPCL meant for the economic development of the country.

“There is a legitimate public interest in providing the details sought. The NNPC has a legal responsibility to account for and explain the whereabouts of the missing oil money.”

SERAP pointed out that the country’s oil wealth ought to be used solely for the benefit of the Nigerian people, and the sake of the present and future generations, saying that without the full recovery and remittance of the missing N500 billion oil revenues, the dire economic situation may worsen and Nigerians will continue to be denied access to basic public goods and services.

“Nigerians have the right to know why the NNPCL failed to remit the subsidy removal savings to the Federation Account, and why the NNPCL is deliberately denying states and local governments their allocations from the Account, contrary to the provisions of the Nigerian Constitution.

“The failure by the NNPCL to remit the money to the Federation Account is a grave violation of the public trust and the provisions of the Nigerian Constitution, national anticorruption laws, and the country’s anticorruption obligations.

“Despite the country’s enormous oil wealth, ordinary Nigerians have derived very little benefit from oil money primarily because of widespread grand corruption, and the entrenched culture of impunity of perpetrators.

“Combating the corruption epidemic in the oil sector would alleviate poverty, improve access of Nigerians to basic public goods and services, and enhance the ability of the government to meet its human rights and anti-corruption obligations.”

The statement noted that the Nigerian Constitution, Freedom of Information Act, and the country’s anti-corruption and human rights obligations rest on the principle that citizens should have access to information regarding the spending of their commonwealth.

“The Auditor-General of the Federation and Nigeria Extractive Industries Transparency Initiative have for many years documented reports of the disappearance of oil money from the NNPCL.

“The World Bank recently disclosed that out of the N1.1tn revenue from crude sales and other income in 2024, the NNPC only remitted N600bn, leaving a deficit of N500bn unaccounted for.

“The revenue and other income were expected to be paid into the Federation Account and shared by all levels of government, but the NNPCL reportedly failed to do so.

“SERAP notes that Section 15(5) of the Nigerian Constitution requires public institutions to abolish all corrupt practices and abuse of power. Section 13 of the Nigerian Constitution imposes clear responsibility on the NNPCL to conform to, observe,  and apply the provisions of Chapter 2 of the Constitution.”

SERAP added that Nigeria has made legally binding commitments under the UN Convention against Corruption to ensure accountability in the management of public resources, stressing that articles 5 and 9 of the UN Convention against Corruption also impose legal obligations on the NNPCL to ensure proper management of public affairs and public funds.

“These commitments ought to be fully upheld and respected.

“The missing oil revenue has also impeded Nigerians’ ability to enjoy their economic and social rights, and denied them access to essential public goods and services, especially at the time of the cost of living crisis in the country.

“Had the NNPCL accounted for and remitted the alleged missing N500 billion to the Federation Account, it is likely that more funds would have been allocated to the fulfillment of economic and social rights, such as increased spending on public goods and services.

“The Freedom of Information Act, Section 39 of the Nigerian Constitution, article 9 of the African Charter on Human and Peoples’ Rights, and article 19 of the International Covenant on Civil and Political Rights guarantee to everyone the right to information on the whereabouts of the missing N500 billion of oil revenue. No date has been fixed for the hearing of the suit.”