SERAP Sues NNPCL, Demands Full Account Of ₦211tn Oil Transactions

• SERAP files suit at the Federal High Court, seeking an order compelling NNPCL to explain ₦211.015 trillion recorded in its 2023 audited financial statements.

• Rights group demands detailed disclosure of ₦107.6 trillion classified as Sundry Receivables and ₦103.4 trillion recorded as Accrued Expenses, including supporting documents and identities of debtors and creditors.

• Organisation argues NNPCL breached the Freedom of Information Act by failing to respond to its request for records, insisting Nigerians have a legal right to scrutinise the management of the nation’s oil wealth.

• Lawsuit adds fresh pressure on the state-owned oil company amid growing calls for greater transparency, fiscal accountability and public oversight of Nigeria’s petroleum revenues.

July 25 , () — The Socio-Economic Rights and Accountability Project (SERAP) has dragged the Nigerian National Petroleum Company Limited (NNPCL) before the Federal High Court in Abuja, seeking an order compelling the state-owned oil company to fully account for more than ₦211 trillion recorded in its 2023 audited financial statements under the accounting entries ‘Sundry Receivables’ and ‘Accrued Expenses’.

The lawsuit is the latest legal challenge mounted by the anti-corruption organisation in its campaign for greater transparency in the management of Nigeria’s oil wealth and comes amid heightened public scrutiny of the financial operations of the national oil company.

In the suit, No. FHC/ABJ/CS/1427/2026, filed last week, SERAP is asking the court to issue an order of mandamus directing NNPCL to account for the ₦211,015,245,000,000 reflected in its 2023 audited financial statements and disclose all documents, records and information relating to the transactions.

The organisation argued that the financial statements recorded ₦107.6 trillion as Sundry Receivables and ₦103.4 trillion as Accrued Expenses without providing sufficient details to enable Nigerians independently verify or scrutinise the transactions.

According to SERAP, the absence of adequate disclosures raises serious transparency concerns given the enormous sums involved and the public nature of the funds managed by NNPCL.

SERAP Seeks Detailed Breakdown

Specifically, the organisation is asking the court to compel NNPCL to provide a comprehensive explanation and reconciliation of the ₦107.6 trillion recorded as Sundry Receivables.

The requested disclosure includes the identities of individuals, companies or government agencies allegedly owing the money, the amount owed by each debtor, the legal basis for the receivables and the current status of efforts to recover the outstanding sums.

SERAP is equally requesting an order directing the company to disclose a complete breakdown of the ₦103.4 trillion classified as Accrued Expenses, including the identities of creditors and beneficiaries, the nature of the obligations, the legal basis for each liability and documentary evidence establishing their legitimacy.

The organisation is also asking the court to compel NNPCL to release all records, approvals and documents relied upon in preparing and approving the accounting entries contained in its audited financial statements.

According to SERAP, disclosure of the information is necessary to determine whether the transactions were lawfully undertaken, properly documented and consistent with public accountability standards.

‘Nigerians Have Right To Know’

In the originating processes filed by its lawyers Oluwakemi Agunbiade, Kehinde Oyewumi, Andrew Nwankwo and Maryam Mumuni, SERAP argued that there is an overriding public interest in ensuring that NNPCL explains the transactions and demonstrates that the accounting entries are accurate and supported by credible documentation.

The organisation maintained that the Freedom of Information Act and the African Charter on Human and Peoples’ Rights guarantee Nigerians the right to access information held by public institutions, including NNPCL, particularly where such information concerns the management of public resources.

SERAP argued that Nigerians are entitled to know who owes the ₦107.6 trillion classified as receivables, who is entitled to receive the ₦103.4 trillion recorded as accrued expenses, the legal basis for the transactions and whether the accounting entries comply with applicable laws and financial reporting standards.

It further contended that public access to the information would strengthen transparency, prevent corruption, promote fiscal accountability and enhance confidence in the management of Nigeria’s petroleum revenues.

The suit stated that Sundry Receivables represent monies NNPCL claims are owed by individuals, companies or government entities but have not yet been collected, while Accrued Expenses represent liabilities incurred for goods, services or other obligations that remain unpaid.

According to SERAP, although the two accounting entries together account for more than ₦211 trillion, the audited financial statements do not adequately explain the transactions or identify the parties involved, making independent verification impossible.

FOI Obligations Still Apply To NNPCL

SERAP also argued that NNPCL remains fully subject to the provisions of the Freedom of Information Act despite its incorporation as a limited liability company under the Petroleum Industry Act (PIA).

According to the organisation, the company is wholly owned by the Federal Government and continues to manage Nigeria’s petroleum resources and oil revenues on behalf of the Federation, making it legally accountable to the Nigerian public.

The rights group alleged that NNPCL failed to respond to its Freedom of Information request within the statutory period prescribed by law, adding that under the Act such failure amounts to a refusal, thereby entitling SERAP to seek judicial intervention.

It further argued that the information sought is not exempt from disclosure because it concerns matters of overwhelming public interest relating to transparency, fiscal responsibility, good governance and prudent management of public resources.

The organisation maintained that secrecy surrounding the management of oil revenues undermines the rule of law, weakens public confidence and is inconsistent with the provisions of the 1999 Constitution (as amended), the Fiscal Responsibility Act, Financial Regulations, the United Nations Convention Against Corruption, the African Charter on Human and Peoples’ Rights and the International Covenant on Civil and Political Rights.

SERAP added that greater transparency and accountability in the management of Nigeria’s oil wealth are essential to combating corruption, safeguarding public resources and ensuring that petroleum revenues are deployed to improve the welfare and living standards of Nigerians.

No date has yet been fixed for the hearing of the case, while NNPCL had not issued any public response to the specific allegations contained in the suit as of the time of filing this report.