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The Socio-Economic Rights and Accountability Project (SERAP) has initiated legal action against the Nigerian National Petroleum Company Limited (NNPCL) for its failure to explain and account for N500 billion.
SERAP claims that the NNPCL did not deposit this amount into the Federation Account from October 2024 to December 2024.
A statement from SERAP's Deputy Director, Kolawole Oluwadare, indicated that the lawsuit stemmed from recent World Bank allegations suggesting that, out of N1.1 trillion in revenue from crude oil sales and other incomes in 2024, the NNPCL only contributed N600 billion, resulting in an unaccounted deficit of N500 billion.
SERAP's lawsuit, registered as FHC/L/MSC/553/2025 at the Federal High Court in Lagos, calls for a court order to compel the NNPCL to account for the unremitted N500 billion allegedly missing from the Federation Account during the specified timeframe.
Furthermore, SERAP is requesting the court to direct the NNPCL to work with relevant anti-corruption agencies to investigate the spending of this amount and ensure its recovery and prompt remittance to the Federation Account.
Additionally, it seeks to hold accountable those suspected of being responsible for the missing funds and to refer them to anti-corruption agencies for investigation and prosecution.
In its argument, SERAP emphasizes that the NNPCL is obligated to adhere to the Nigerian Constitution of 1999 (as amended), the Freedom of Information Act, and international obligations related to human rights and anti-corruption in its operations. They assert that the disappearance of these oil revenues further worsens the fragile state of the country's economy and contributes to excessive government deficit spending and a severe debt crisis.
According to SERAP, the loss of oil revenue exemplifies a broader issue of NNPCL's lack of accountability and adherence to transparency. The group highlighted a recent significant Supreme Court ruling affirming that the Freedom of Information Act extends to public records held by the NNPCL. The lawsuit, filed by SERAP's lawyers Kolawole Oluwadare, Ms. Oluwakemi Oni, and Ms. Valentina Adegoke, asserts that Nigerians are suffering due to the missing public funds that were intended for national development.
SERAP argues that there is a crucial public interest in disclosing the requested details, as the NNPC has a legal duty to report on the missing oil revenues. They further stress that Nigeria's oil wealth should benefit the citizens and future generations. Without recovering the missing N500 billion, the dire economic situation may worsen, denying Nigerians access to essential public services and amenities.
Nigerians are entitled to know why the NNPCL failed to deposit subsidy removal savings into the Federation Account and why state and local governments are not receiving their allocations from the Account, as required by the Constitution.
The NNPCL's failure to remit funds to the Federation Account constitutes a serious breach of public trust and violates constitutional and anti-corruption laws. Despite the nation's significant oil wealth, ordinary citizens have seen little benefit due to pervasive corruption and a persistent culture of impunity among offenders. Combating corruption in the oil sector could reduce poverty, improve access to essential services, and enhance governmental fulfillment of human rights obligations.
The statement also points out that Nigeria’s legislation emphasizes citizens' right to know about public resource management. The Auditor-General and Nigeria Extractive Industries Transparency Initiative have documented reports highlighting the misappropriation of oil funds by the NNPCL. The World Bank has reiterated that out of N1.1 trillion expected in revenues in 2024, only N600 billion was remitted, with N500 billion unaccounted for.
The expected revenue should have been shared among all government levels, yet reports indicate that the NNPCL neglected this duty. SERAP references Section 15(5) of the Constitution, which mandates public agencies to eliminate corruption and abuse of power, as well as Section 13, which outlines the NNPCL’s responsibilities under Chapter 2 of the Constitution.
Additionally, SERAP notes Nigeria's binding commitments under the UN Convention against Corruption to ensure accountability in public resource management, insisting that the NNPCL must comply with articles 5 and 9 of the Convention, which impose legal requirements for properly managing public affairs and funds.
SERAP argues that the absence of these oil revenues has hindered Nigerians from enjoying their economic and social rights, depriving them of essential services during a cost-of-living crisis. They believe that if the NNPCL had accounted for and transferred the missing N500 billion to the Federation Account, more funds could have been directed towards fulfilling economic and social rights, such as increased public spending.
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 guarantee the right to information regarding the missing N500 billion in oil revenue. No hearing date has yet been established for the lawsuit.
