The Socio-Economic Rights and Accountability Project (SERAP) has initiated a legal action against the Nigerian National Petroleum Company Limited (NNPCL) over the company's alleged failure to explain and account for ₦211 trillion recorded in its 2023 audited financial statements as 'Sundry Receivables' and 'Accrued Expenses.' The suit, filed at the Federal High Court in Abuja, seeks to compel NNPCL to provide detailed disclosures to enable public scrutiny of the massive sums.
Details of the Lawsuit
In the suit numbered FHC/ABJ/CS/1427/2026, SERAP is requesting an order of mandamus to direct NNPCL to account for the ₦211 trillion and to release all documents and information related to the transactions. The organization specifically demands a breakdown of the ₦107.6 trillion recorded as 'Sundry Receivables,' including the identities of debtors, amounts owed, legal basis, and recovery status. Additionally, SERAP seeks disclosure of the ₦103.4 trillion in 'Accrued Expenses,' covering creditors, beneficiaries, nature of liabilities, and supporting documents.
SERAP's Legal Arguments
SERAP contends that there is an overriding public interest in the disclosure, citing the Freedom of Information Act and the African Charter on Human and Peoples' Rights, which guarantee the right to access information held by public institutions. The organization argues that NNPCL's failure to provide this information undermines transparency, accountability, and public confidence in the management of Nigeria's oil wealth. According to SERAP, the funds managed by NNPCL are public funds derived from Nigeria's petroleum resources, and Nigerians have a legal right to scrutinize their management.
Quotes from the Suit
In the suit filed by SERAP lawyers Oluwakemi Agunbiade, Kehinde Oyewumi, Andrew Nwankwo, and Maryam Mumuni, it states: "'Sundry Receivables' are amounts of money that NNPCL says are owed to it by individuals, companies or government entities but which it has not yet received. 'Accrued Expenses' are amounts that NNPCL says it owes to others for goods, services or other obligations that have been incurred but not yet paid. Together, these entries account for over ₦211 trillion in NNPCL's 2023 audited financial statements. Yet the financial statements do not adequately explain who owes the money, who is to be paid, the legal basis for the transactions, or provide the supporting documents necessary for Nigerians to independently scrutinise and verify these enormous sums."
NNPCL's Obligations Under FOI Act
SERAP argues that NNPCL remains fully subject to the Freedom of Information Act because it is wholly owned by the Federal Government and manages Nigeria's petroleum resources on behalf of the Federation. The Petroleum Industry Act did not remove NNPCL's legal obligations to operate transparently and accountably. SERAP notes that NNPCL failed to respond to their FOI request within the prescribed timeline, which under the Act is deemed a refusal, entitling SERAP to seek judicial intervention.
Impact on Governance and Public Trust
According to SERAP, secrecy over oil revenue management undermines the rule of law and weakens public trust. The organization emphasizes that greater transparency is essential to combating corruption and ensuring that Nigeria's wealth benefits its citizens. The suit argues that the requested information is not exempt from disclosure and concerns matters of overwhelming public interest related to fiscal accountability and good governance.
Current Status of the Suit
No date has been fixed for the hearing of the suit. SERAP Deputy Director Kolawole Oluwadare confirmed the filing, stating that the organization remains committed to holding NNPCL accountable. The case highlights ongoing concerns about transparency in Nigeria's oil sector, which is vital to the nation's economy.
