SERAP Sues NNPCL Over Failure To Account For ₦5.9bn Rebranding Cost

June 14, () — 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 approximately ₦5.9 billion reportedly spent on the incorporation, transition, and rebranding of NNPC into NNPCL.”

reports that the suit brought before the Federal High Court in Abuja, centred on a controversial sum of ₦5.9 billion allegedly expended during the process of transforming the defunct Nigerian National Petroleum Corporation (NNPC) into the Nigerian National Petroleum Company Limited (NNPCL), a restructuring exercise that followed the implementation of the Petroleum Industry Act (PIA) 2021.

According to the court documents, the former NNPC reportedly spent ₦2.9 billion on incorporation expenses from proceeds from petroleum product sales. In addition, the National Petroleum Investment Management Services, better known as National Petroleum Investment Management Services (NAPIMS), allegedly charged another ₦2.9 billion against crude oil revenues for what was described as the same incorporation and transition process.

The combined expenditure, which now forms the basis of SERAP’s lawsuit, has raised questions about duplication of costs, procurement procedures, authorisation processes, and whether public funds were utilised in line with constitutional and anti-corruption provisions governing public institutions in Nigeria.

Court documents show that in suit number FHC/ABJ/CS/1248/2026, filed last week before the Court, SERAP is seeking an order of mandamus compelling the NNPCL to publicly account for the controversial expenditure.

Specifically, the rights group is asking the court to direct the oil company to provide what it described as a “comprehensive reconciliation statement” detailing every financial transaction connected to the ₦5.9 billion expenditure.

The organisation further requested that the court compel NNPCL to disclose the identities of all contractors allegedly engaged for the rebranding exercise, the exact nature of services rendered, and a breakdown of how the funds were ultimately spent.

In addition, SERAP is demanding full disclosure of the names and official designations of government officials who approved and authorised the release of the funds for the incorporation and transition process.

The organisation also wants the court to determine whether the entire expenditure complied with extant procurement laws, due process requirements, and established regulations governing public sector financial transactions.

In its legal argument, SERAP insisted that Nigerians possess a legitimate constitutional right to know how public funds tied to the petroleum sector are being utilised, particularly expenditures involving billions of naira.

According to the suit, the organisation argued that there is overwhelming public interest in establishing whether the ₦5.9 billion spending represented value for money or amounted to unlawful expenditure carried out in violation of due process procedures.

SERAP maintained that complete transparency surrounding the expenditure is essential because the public deserves to know who approved the spending, who received payments, what services were rendered, and whether the procedures adopted complied with legal requirements.

The organisation further argued that public disclosure would allow Nigerians to independently assess whether the expenditure was properly authorised and determine whether the spending process followed constitutional standards of accountability.

SERAP stated in its filing that the size of the expenditure and the strategic importance of the petroleum sector make immediate and transparent disclosure necessary, stressing that failure to do so undermines public confidence in one of Nigeria’s most critical revenue-generating institutions.

The suit, filed on behalf of SERAP by a team of lawyers, including Oluwakemi Agunbiade, Kehinde Oyewumi, and Andrew Nwankwo, accused the NNPCL of violating public trust through its refusal to account for the disputed funds.

According to excerpts from the filing, the rights group described the alleged spending as potentially constituting a serious breach of the provisions of the 1999 Constitution of the Federal Republic of Nigeria, anti-corruption statutes, and Nigeria’s international obligations under global anti-corruption treaties.

SERAP argued that the failure to account for the expenditure reflects broader institutional problems within NNPCL regarding transparency, accountability, and responsible stewardship of public assets.

The organisation said NNPCL’s refusal or failure to provide a detailed financial account undermines the constitutional right of citizens to access information concerning the management of national resources.

The legal action also references recent concerns reportedly raised by the Senate Committee on Public Accounts, which allegedly questioned the legitimacy and justification of the expenditure.

According to SERAP, the Senate Committee reportedly described the ₦5.9 billion spending as excessive, unjustifiable, and deserving of deeper legislative investigation and public scrutiny.

The controversy stems from the structural transformation of the former NNPC into NNPCL following the enactment of the Petroleum Industry Act 2021, legislation designed to commercialise the national oil company and reposition it as a limited liability company wholly owned by the Federal Government of Nigeria.

SERAP’s filing specifically cited Section 13 of the Nigerian Constitution, which mandates all public institutions to comply with the provisions of Chapter II of the Constitution.

The organisation also referenced Section 15(5), which requires public institutions to abolish corrupt practices and prevent abuse of power, as well as Section 16, which obligates government institutions to ensure national resources are managed for the collective benefit of citizens.

Beyond domestic laws, SERAP argued that Nigeria has international obligations under the United Nations Convention against Corruption, particularly Articles 5 and 9, which require governments to promote transparency and ensure proper management of public funds.

The suit additionally cited Article 21 of the African Charter on Human and Peoples’ Rights, which recognises the right of citizens to benefit from their country’s natural resources freely and provides that any misappropriation of such resources creates a basis for recovery and compensation.