The Socio-Economic Rights and Accountability Project (SERAP) has taken legal action against the Nigerian National Petroleum Company Limited (NNPCL), challenging its failure to explain or account for the alleged disappearance of N500 billion oil revenue from October to December 2024.
The lawsuit, filed at the Federal High Court in Lagos under suit number FHC/L/CS/553/2025, follows damning allegations by the World Bank that NNPCL failed to remit over 45 per cent of its total oil proceeds in 2024. According to the Bank’s assessment, NNPCL generated N1.1 trillion in revenue from crude oil sales and other streams within the year but remitted only N600 billion to the Federation Account, leaving a deficit of N500 billion unaccounted for.
In a statement made available to the press on Sunday, SERAP said it is seeking “an order of mandamus to compel the NNPCL to explain and account for the alleged missing N500 billion, and to invite relevant anti-corruption agencies to investigate the matter and ensure recovery of the funds.”
SERAP is also urging the court to direct the company to “identify and surcharge officials responsible for the non-remittance and hand them over for criminal investigation and prosecution.”
Quoting its application before the court, SERAP stated: “Nigerians have the right to know why the NNPCL failed to remit the subsidy removal savings to the Federation Account, and why it is deliberately denying states and local governments their constitutional allocations.”
The group added, “The failure by the NNPCL to remit the money to the Federation Account is a grave violation of the public trust and a breach of the Nigerian Constitution, national anti-corruption laws, and the country’s international obligations.”
SERAP’s case is anchored on several legal frameworks, including the Nigerian Constitution, the Freedom of Information (FoI) Act, and international conventions. In particular, Section 15(5) of the Nigerian Constitution obligates public institutions to “abolish all corrupt practices and abuse of power,” while Section 13 requires agencies like NNPCL to adhere strictly to constitutional principles.
However, NNPCL, through its legal representatives Afe Babalola & Co, has dismissed SERAP’s demands, arguing that the FoI Act does not apply to it a claim SERAP disputes.
“The Freedom of Information Act, Section 39 of the Constitution, 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 right to public information,” SERAP noted.
Concerns over NNPCL’s accountability are not new. Both the Auditor-General of the Federation and the Nigeria Extractive Industries Transparency Initiative (NEITI) have in past audits flagged significant discrepancies and unremitted oil revenue. Critics say the company operates with little transparency despite its central role in managing Nigeria’s oil wealth.
“Despite the country’s enormous oil wealth, ordinary Nigerians have derived very little benefit due to widespread grand corruption and entrenched impunity,” SERAP said.
It added that the loss of N500 billion in public revenue during a time of economic hardship has worsened poverty and denied millions access to basic public goods and services such as education, healthcare, and clean water.
“Combating corruption in the oil sector is crucial for alleviating poverty and meeting Nigeria’s economic and social rights obligations,” the group stressed.
SERAP further argued that Nigeria’s ratification of the United Nations Convention against Corruption binds it to uphold transparent financial practices in the public sector. Articles 5 and 9 of the convention specifically require member states to ensure accountability and proper management of public resources.
“The missing oil revenue has also impeded Nigerians’ ability to enjoy their economic and social rights,” SERAP stated. “Had the NNPCL accounted for and remitted the alleged missing funds, it is likely that more resources would have been allocated to public services.”
With no hearing date fixed yet, the case has drawn fresh attention to the opaque operations of the NNPCL since its transformation into a commercial entity in 2022 under the Petroleum Industry Act.
