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SERAP Sues NNPCL Over N500 Billion Missing Oil Revenue, Demands Transparency and Accountability

The Socio-Economic Rights and Accountability Project (SERAP) has initiated legal proceedings against the Nigerian National Petroleum Company Limited (NNPCL) over its alleged failure to remit a staggering N500 billion in oil revenue to the Federation Account between October and December 2024. The rights group filed the lawsuit at the Federal High Court in Lagos, marking a significant escalation in the ongoing debate over transparency and fiscal responsibility in Nigeria’s oil sector.

In a statement shared via its official X (formerly Twitter) account on Sunday, SERAP disclosed that it is suing the NNPCL not only over the missing funds but also to challenge the corporation’s claim that the Freedom of Information (FOI) Act does not apply to it. The lawsuit—filed on Friday, May 30, 2025, and registered as suit number FHC/L/MSC/553/2025—seeks to hold the NNPCL accountable through legal compulsion.

SERAP’s Court Demands

The rights organization is asking the court to issue an order of mandamus compelling the NNPCL to explain the whereabouts of the N500 billion it allegedly failed to remit. SERAP also wants the court to direct the oil corporation to invite the appropriate anti-corruption agencies, namely the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC), to conduct a thorough investigation.

In addition to the recovery of the unremitted funds, SERAP is urging the court to compel the NNPCL to:

Identify individuals suspected to be responsible for the mismanagement or misappropriation of the funds.
Surcharge those individuals for the full amount involved.
Hand them over to the anti-graft agencies for prosecution.

These demands underscore SERAP’s commitment to enforcing public accountability, particularly in the management of oil revenues—Nigeria’s most critical source of foreign exchange.

Allegations of Legal Evasion and Economic Sabotage

SERAP contends that the NNPCL has deliberately evaded its legal responsibilities, including those under the Nigerian Constitution and the FOI Act. The organization emphasized that the alleged disappearance of N500 billion in oil revenue further worsens Nigeria’s already precarious fiscal landscape, characterized by ballooning debt and record-high deficit spending.

“The missing oil revenues have further damaged the already precarious economy in the country and contributed to high levels of deficit spending by the government and the country’s crippling debt crisis,” SERAP stated in the lawsuit.

Furthermore, SERAP accused the NNPCL of an ongoing failure to uphold transparency and accountability in its operations, arguing that this culture of impunity poses a direct threat to national development.

Supreme Court Ruling Strengthens SERAP’s Case

In a landmark judgment earlier this year, the Supreme Court ruled that the FOI Act applies to all public records in the Federation, including those maintained by the NNPCL. This decision undermines the NNPCL’s long-standing position that it is exempt from FOI obligations—a defense it has frequently used to shield its operations from public scrutiny.

Citing the Supreme Court judgment, SERAP maintained that Nigerians have a constitutional right to know how public funds are managed, especially oil revenue that affects allocations to states and local governments.

SERAP’s May 2025 Demand Letter to NNPCL

Prior to the lawsuit, SERAP had written a Freedom of Information request to the Group Chief Executive Officer of NNPCL, Mr. Bayo Bashir Ojulari, dated May 17, 2025. In the letter signed by Kolawole Oluwadare, SERAP’s Deputy Director, the organization demanded an explanation for the missing N500 billion.

SERAP requested that the NNPCL:

Clarify why the funds were not remitted.
Disclose individuals responsible.
Facilitate a full investigation by ICPC and EFCC.
Ensure the recovery and remittance of the entire amount to the Federation Account.

According to SERAP, “There is a legitimate public interest in explaining the whereabouts of the alleged missing N500 billion oil money and grave violations of the Nigerian Constitution 1999 [as amended].” The group further insisted that Nigeria’s oil wealth must benefit both present and future generations of Nigerians and must not be mismanaged with impunity.

Financial Institutions Raise Concerns

The World Bank’s latest Nigeria Development Update appears to support SERAP’s claims. It revealed that although the NNPCL generated approximately N1.1 trillion from crude oil sales and other revenue streams in 2024, only N600 billion was remitted to the Federation Account—leaving a shortfall of N500 billion.

Similarly, the International Monetary Fund (IMF) has urged the Nigerian government to ensure that savings from fuel subsidy removal are transparently accounted for in the national budget. The IMF emphasized that fiscal discipline and transparency in public revenue management are critical for stabilizing Nigeria’s economy and ensuring efficient allocation of resources.

Background: The Fuel Subsidy Removal and Its Aftermath

In 2023, President Bola Tinubu received praise from global financial institutions for removing the long-standing petrol subsidy. Though the removal led to a sharp increase in fuel prices—tripling overnight—it was projected to save Nigeria billions of dollars in recurrent expenditure.

However, despite the subsidy reform, concerns persist about how the resultant savings are managed. The controversy surrounding the alleged missing N500 billion has reignited doubts about whether the fuel subsidy removal has truly translated into fiscal gains for Nigeria or simply created a new avenue for revenue leakages.

What’s at Stake

If the court grants SERAP’s prayers, the NNPCL could face a landmark judgment that may force a change in how it handles public funds. The ruling could also set a new legal precedent for applying transparency standards to state-owned enterprises that have long operated with limited public oversight.

For now, SERAP’s case serves as a litmus test of Nigeria’s commitment to fighting corruption and upholding transparency in one of its most critical sectors. The outcome of this legal battle could shape the future of public sector accountability in Nigeria’s oil industry and influence how state institutions respond to demands for financial disclosure.

Conclusion

The lawsuit by SERAP against NNPCL comes at a time when economic instability and public distrust in government institutions are at an all-time high. With billions of Naira in oil revenue unaccounted for, the call for greater transparency is more urgent than ever. Whether through judicial intervention or executive compliance, Nigerians await accountability for funds meant to drive development but now shrouded in controversy.