The Socio-Economic Rights and Accountability Project (SERAP) has initiated legal action against the Nigerian National Petroleum Company Limited (NNPCL) over the alleged failure to account for N500 billion in missing oil revenue. The lawsuit, filed at the Federal High Court in Lagos (Suit No. FHC/L/MSC/553/2025), seeks to compel the NNPCL to explain the unremitted funds reportedly due to the Federation Account between October and December 2024.
This development follows a disclosure by the World Bank that, out of the N1.1 trillion revenue generated by the NNPCL from crude oil sales and other sources in 2024, only N600 billion was remitted, leaving a shortfall of N500 billion unaccounted for.
In response to a Freedom of Information (FoI) request by SERAP, the NNPCL, through its legal representatives at Afe Babalola and Co, argued that the FoI Act does not apply to it. However, SERAP is challenging this stance, citing a recent Supreme Court ruling affirming that the FoI Act applies to all public records, including those held by the NNPCL.
In the suit, SERAP is requesting the court to issue:
An order of mandamus compelling the NNPCL to provide a full account of the missing N500 billion.
An order directing the NNPCL to invite appropriate anti-corruption agencies to investigate the missing funds and ensure their recovery and remittance to the Federation Account.
An order requiring the NNPCL to identify and hold accountable those responsible for the unremitted funds and hand them over to relevant authorities for investigation and prosecution.
SERAP contends that the NNPCL has violated its constitutional and legal obligations under Nigerian and international anti-corruption and human rights laws. It argues that the missing oil revenue has worsened Nigeria’s economic crisis, increased government deficit spending, and deepened the nation’s debt burden.
According to SERAP, the situation reflects a broader pattern of poor transparency and accountability within the NNPCL. It emphasized that oil revenues—Nigeria’s major source of income—should be used exclusively for public welfare, not lost to mismanagement or corruption.
The organization also pointed out that the alleged diversion of funds has directly affected the provision of essential public goods and services at a time when Nigerians are grappling with high inflation and widespread poverty. SERAP asserts that the failure to remit subsidy removal savings has denied states and local governments their constitutionally mandated allocations.
The suit, filed by SERAP’s legal team—Kolawole Oluwadare, Ms. Oluwakemi Oni, and Ms. Valentina Adegoke—argues that:
The NNPCL’s refusal to remit the funds constitutes a grave breach of public trust.
It violates sections 13 and 15(5) of the Nigerian Constitution, which mandate public institutions to uphold the principles of accountability and transparency, and to eradicate corruption.
The act contravenes provisions of the UN Convention against Corruption, which Nigeria is a party to, particularly Articles 5 and 9 that obligate public institutions to manage public resources responsibly.
The failure has hindered the realization of citizens’ socio-economic rights and compromised the government’s ability to deliver critical services.
Additionally, SERAP highlights that Section 39 of the Nigerian Constitution, the Freedom of Information Act, Article 9 of the African Charter on Human and Peoples’ Rights, and Article 19 of the International Covenant on Civil and Political Rights all guarantee the public’s right to know how public funds are managed.
The lawsuit insists that transparency in oil revenue management is essential to combating poverty and promoting good governance in Nigeria. SERAP concludes that unless the NNPCL is held accountable and the missing funds are recovered, the already dire economic situation in the country will continue to deteriorate.
No date has yet been fixed for the hearing.
