A significant legal challenge has been mounted against the Nigerian National Petroleum Company (NNPC) Limited, as the Socio-Economic Rights and Accountability Project (SERAP) announced it has filed a lawsuit concerning an alleged unremitted sum of N500 billion to the Federation Account. The suit seeks judicial intervention to compel the national oil company to provide a detailed account and explanation for the whereabouts of these funds, purportedly missing between October and December 2024.
This legal action stems from recent allegations made by the World Bank, which indicated that out of an estimated N1.1 trillion in revenue generated from crude sales and other income in 2024, NNPC Limited reportedly remitted only N600 billion. This left a substantial deficit of N500 billion unaccounted for.
In a prior attempt to ascertain the facts, SERAP had submitted a Freedom of Information (FoI) request to NNPC Limited. However, the national oil company, through its legal representatives Afe Babalola and Co, contended that the FoI Act does not apply to its operations, effectively declining to provide the requested information.
Undeterred, SERAP proceeded with the lawsuit, designated as suit number FHC/L/MSC/553/2025, which was filed last Friday at the Federal High Court in Lagos. The core of SERAP's demands includes:
- An order of mandamus: This seeks to direct and compel NNPC Limited to account for the alleged missing N500 billion that it purportedly failed to remit to the Federation Account during the specified period
- Invitation of anti-corruption agencies: SERAP is also asking the court to direct and compel NNPC Limited to invite appropriate anti-corruption agencies to investigate the spending and whereabouts of the N500 billion, with the ultimate goal of ensuring its prompt recovery and remittance to the Federation Account.
- Identification and prosecution of culprits: Furthermore, the suit requests the court to direct and compel NNPC Limited to identify individuals suspected of being responsible for the alleged missing oil funds, surcharge them for the full amount involved, and hand them over to appropriate anti-corruption agencies for investigation and prosecution.
In its legal arguments, SERAP emphasizes that NNPC Limited, as a public entity, is obligated to comply with the provisions of the Nigerian Constitution 1999 (as amended), the Freedom of Information Act, and the country’s international human rights and anti-corruption commitments in the discharge of its statutory duties.
SERAP also argues that the alleged missing oil revenues have exacerbated Nigeria's already fragile economy, contributing to high levels of deficit spending by the government and compounding the nation's severe debt crisis. The organization posits that the unremitted funds are a clear indicator of a broader failure in NNPC Limited's accountability mechanisms and its persistent inability to uphold principles of transparency and accountability.
Crucially, SERAP's suit leans on a recent landmark judgment by the Supreme Court. This judgment unequivocally declared that the Freedom of Information Act is "applicable and applies to the public records in the Federation," explicitly including those maintained by NNPC Limited. This ruling is expected to be a pivotal point in SERAP's argument for the applicability of the FoI Act to the national oil company. The case is set to be a significant test of transparency and accountability in Nigeria's critical oil sector.