NNPCL Sued to Court Over Missing ₦22.3bn, $49.7m Oil Funds

The Nigerian National Petroleum Company Limited (NNPCL) has been dragged before the Federal High Court in Abuja over allegations surrounding missing oil revenues running into billions of naira and several foreign currencies.

This lawsuit was filed by the Socio-Economic Rights and Accountability Project (SERAP), which is demanding a full explanation on how large sums of public funds allegedly disappeared from NNPCL’s accounts.

The disputed amounts include ₦22.3 billion, USD$49.7 million, £14.3 million and €5.2 million.

The legal action follows findings contained in the 2022 audited report of the Auditor-General of the Federation, which raised questions about unaccounted oil revenues. SERAP said the report exposed serious gaps in financial records linked to NNPCL’s operations.

In the suit filed last Friday, the organisation is asking the court to issue “an order of mandamus to direct and compel the NNPCL to account for the alleged missing or diverted N22.3 billion, USD$49.7 million, £14.3 million, and €5.2 million oil money.”

SERAP also urged the court to compel NNPCL to make public the details of all transactions connected to the funds. This includes who received the money, how it was spent, and which contractors or individuals were involved.

According to the group, “The diverted or misappropriated oil revenues reflect a failure of NNPCL accountability more generally and are directly linked to the institution’s continuing failure to uphold the principles of transparency and accountability.”

SERAP further argued that allowing the situation to go unchecked would encourage impunity and weaken trust in public institutions. It maintained that Nigerians are the real victims of the alleged diversion of oil funds.

“Granting the reliefs sought would strike a blow against the impunity of those responsible for the missing or diverted oil money, and ensure that the money is returned for the sake of NNPCL’s victims—Nigerians,” the organisation stated.

The group added that the disappearance of oil revenue has contributed to worsening poverty across the country. It said the funds could have been used to improve access to healthcare, education, and other essential services.

SERAP also pointed out that the Auditor-General has repeatedly raised similar concerns over oil revenues in past reports, suggesting that the issue has become a recurring problem within the petroleum sector.

“The allegations have also undermined the economic development of the country, trapped the majority of Nigerians in poverty and deprived them of opportunities,” SERAP noted.

It stressed that tackling corruption in the oil industry would help the government meet its obligations to citizens and improve confidence in the management of national resources.

“Combating the corruption epidemic in the oil sector would alleviate poverty, improve access of Nigerians to basic public goods and services, and enhance the ability of the government to meet its human rights and anti-corruption obligations,” the group added.

As of the time of filing this report, NNPCL has not publicly responded to the lawsuit.

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