A major legal battle is unfolding in Nigeria as the Socio-Economic Rights and Accountability Project (SERAP) has taken the Nigerian National Petroleum Company Limited (NNPCL) to court over the alleged disappearance of ₦825 billion and $2.5 billion in public funds. These funds were reportedly set aside for refinery rehabilitation and other oil sector operations but remain unaccounted for, according to the findings of the Auditor-General of the Federation.

This lawsuit, filed at the Federal High Court in Lagos, marks a bold move by SERAP to force accountability on the part of NNPCL. It aims to recover public funds believed to have been misused or misappropriated under the guise of infrastructure repair and oil revenue management.

Legal Action to Compel Accountability

In its suit, SERAP is seeking an order of mandamus from the court—essentially a legal command—that would compel the NNPCL to disclose the whereabouts of the missing funds. The organization is also asking the court to mandate the recovery of the money and direct NNPCL to identify all individuals involved in the mismanagement or misappropriation. These individuals should, SERAP insists, be handed over to relevant anti-corruption agencies for investigation and possible prosecution.

The legal filing follows revelations from the 2021 audited financial report prepared by the Office of the Auditor-General of the Federation. This audit, published in late 2024, flagged numerous financial discrepancies within NNPCL, sparking concerns of systemic corruption and lack of oversight in Nigeria’s most vital economic sector.

Breakdown of Missing Funds

According to the audit report, the oil corporation failed to explain or justify several massive withdrawals and deductions, raising serious questions about financial integrity. Among the key findings were:

• ₦82 billion reportedly withdrawn from crude oil and gas sales between 2020 and 2021, allegedly for refinery repairs, but lacking documentation or proper accounting.

• ₦343 billion deducted from domestic crude oil proceeds under the pretext of pipeline maintenance and management, again without due process or clarity.

• ₦204 billion in unjustified oil royalty deductions that were meant to be remitted to the Department of Petroleum Resources (now the Nigerian Upstream Petroleum Regulatory Commission).

• ₦83 billion classified as “miscellaneous income” from joint venture operations between 2016 and 2020, withdrawn from a Central Bank-managed sinking fund, without transparent documentation.

Additional funds include:

• ₦28.6 billion in unpaid bridging allowances.

• ₦13.5 billion in unremitted funds related to claims from major oil marketers.

• ₦15.2 billion in debts owed by 26 marketers that remain outstanding.

• $29.6 million in oil royalties due to regulatory agencies.

• Over $2.2 billion and ₦48 billion in oil royalties that NNPCL allegedly failed to collect from oil companies.

The magnitude of these figures—totaling over ₦825 billion and $2.5 billion—has triggered outrage from civil society groups and citizens alike, especially in light of Nigeria’s ongoing economic challenges and fuel import dependency.

Serious Implications for Public Trust

In its legal arguments, SERAP stresses that these alleged financial lapses constitute a gross violation of the Nigerian Constitution, national anti-corruption laws, and international conventions on transparency and accountability. The organization believes that holding NNPCL accountable will not only recover stolen funds but will also reinforce institutional transparency and public trust.

“The failure to account for these funds reflects a deeper crisis of accountability within NNPCL,” SERAP argued. “This lawsuit aims to correct systemic failures and ensure that the billions of naira meant for critical national infrastructure are not siphoned off by corrupt practices.”

Industry Voices Back Transparency Push

The legal push comes amid growing skepticism over the performance of Nigeria’s publicly owned refineries, which remain non-functional despite decades of financial input. The recent statement by prominent businessman Aliko Dangote—who asserted that the NNPCL refineries may never work again despite over $18 billion spent on them—added significant weight to calls for a full investigation into refinery rehabilitation funds.

SERAP’s suit highlights that if such huge sums have indeed disappeared or been diverted, it is not only a financial crime but also an assault on the economic stability of the country. With the cost of living rising, fuel prices climbing, and public services under strain, many Nigerians have reacted with fury at the allegations.

Public Interest and Political Pressure

The case has sparked considerable political and civic interest, especially among groups advocating for greater oversight in public finance. Various stakeholders have called on the federal government to take the matter seriously, urging judicial independence in handling the case.

Several civic organizations have also echoed SERAP’s demand for a forensic audit of NNPCL, calling it essential for restoring public confidence in the oil and gas sector. The lawsuit is expected to have wide-reaching implications, potentially opening the door for further legal actions against other state-owned enterprises facing similar accusations of mismanagement.

Court’s Role and Next Steps

The Federal High Court in Lagos has not yet assigned a hearing date for the case. However, once the court process begins, SERAP is expected to argue that the reliefs it seeks—compelling explanation, recovery of public funds, and prosecution of those responsible—are in the national interest.

If the court rules in favor of SERAP, NNPCL would be legally required to open its books and submit evidence of how these funds were spent or lost. More importantly, the judgment could establish a critical precedent for future litigation involving public funds.

A Watershed Moment for Transparency

For many observers, this case may represent a turning point in Nigeria’s fight against impunity and fiscal irresponsibility. NNPCL, which recently underwent restructuring to become a limited liability company, has frequently come under fire for opaque practices. If found culpable, it would face immense pressure to reform, reorganize, and commit to far more stringent auditing processes.

Furthermore, the case could redefine how Nigerian institutions handle public finance. It may become a landmark judgment—one that shifts the balance of power toward greater civil oversight and reduces the ability of parastatals to operate without meaningful scrutiny.

Conclusion: A Litmus Test for Justice

At a time when Nigeria is seeking foreign investment, reducing national debt, and dealing with severe economic hardship, the accountability of state-owned institutions has never been more critical. The SERAP lawsuit against NNPCL is more than a legal issue; it is a litmus test for justice, transparency, and the Nigerian government’s resolve to clean up its oil sector.

The outcome of this suit could shape Nigeria’s public finance landscape for years to come—and determine whether the voices demanding accountability finally succeed in shifting the tide against impunity.