By Francis Ajuonuma
The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Nigerian National Petroleum Company Limited (NNPCL) over its failure to account for ₦825 billion and $2.5 billion earmarked for refinery rehabilitation and other oil-related revenues.
The suit, filed on July 12, 2025, at the Federal High Court in Lagos (Suit No. FHC/L/MISC/722/25), follows revelations in the 2021 audited report by the Auditor-General of the Federation.
The report highlighted widespread financial discrepancies in the NNPCL’s operations between 2016 and 2021.
In a statement issued on Sunday, SERAP’s Deputy Director, Kolawole Oluwadare, said the lawsuit aims to “compel the NNPCL to fully account for and return all missing funds into the Federation Account and hold those responsible accountable.”
According to SERAP, the missing funds include ₦82.9 billion deducted from crude oil sales for refinery repairs and ₦343.6 billion from domestic crude sales spent without proper documentation on pipeline maintenance and management.
The group also cited over ₦204.8 billion in unauthorised deductions from oil royalties and $2.26 billion in unpaid royalties from oil companies that should have gone to the Federation Account.
“These grim allegations reflect a serious breakdown of accountability in the oil sector and show how impunity continues to rob Nigerians of development,” Oluwadare said. “The NNPCL must come clean and recover these funds.”
Aliko Dangote, President of the Dangote Group, recently remarked that Nigeria’s public refineries may “never work again,” despite billions spent on their rehabilitation. His comments further reinforced SERAP’s concerns.
The suit is also asking the court to compel NNPCL to identify officials responsible, surcharge them for the missing funds, and hand them over to anti-graft agencies like the EFCC and ICPC for investigation and prosecution.
“The vast majority of Nigerians have seen little benefit from the country’s oil wealth. Instead, we see reports of missing billions while fuel remains scarce and expensive,” SERAP argued in the suit.
The Auditor-General’s report, published in November 2024, expressed fears that the missing sums may have been diverted or misappropriated, urging recovery and immediate remittance to the national treasury.
Among other discrepancies, the report noted ₦83.6 billion in unexplained income from joint venture operations, ₦3.7 billion in dubious payments for PMS shortfalls, and ₦28.6 billion in unremitted bridging allowances.
The audit also revealed over $29.6 million in outstanding royalties and additional billions owed by oil marketers and operators, raising concerns about Nigeria’s rising debt and budget funding gaps.
SERAP maintained that recovering the missing funds was critical to restoring public trust, addressing poverty, and reducing the government’s reliance on borrowing to fund the national budget.
“This lawsuit is not just about the money; it’s about transparency, justice, and ensuring that Nigerians get the value of their natural resources,” Oluwadare added.
As of press time, no date has been fixed for the hearing of the case.
