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SERAP files lawsuit against NNPCL over missing $2.5bn and N825bn earmarked for refinery rehabilitation.
The Socio-Economic Rights and Accountability Project (SERAP) has initiated legal action against the Nigerian National Petroleum Company (NNPC) Limited for failing to account for approximately N825bn and $2.5bn allegedly misallocated for 'refinery rehabilitation' and other oil revenues.
This lawsuit stems from alarming findings reported in the 2021 audited report by the Auditor-General of the Federation, released on November 27, 2024.
President of the Dangote Group, Aliko Dangote, recently remarked that there might be no future operation of NNPCL refineries, despite an investment of $18 billion in them.
In the suit, numbered FHC/L/MISC/722/25 and filed last Friday at Lagos Federal High Court, SERAP requests: “an order of mandamus compelling NNPCL to disclose and clarify the status of the missing N825 billion and USD$2.5 billion of public funds designated for ‘refinery rehabilitation’ and repairs.”
The organization is also urging the court “to mandate NNPCL to recover and deposit the missing N825 billion and USD$2.5 billion into the federation account.” Furthermore, SERAP seeks a directive that NNPCL identify those accountable for the misappropriated funds, impose financial penalties on them, and refer them to relevant anti-corruption bodies for investigation and prosecution.
In its argument, SERAP states: “The grave claims made by the Auditor-General and Aliko Dangote indicate a serious breach of public trust and the Nigerian Constitution, national anti-corruption laws, and the country’s international human rights obligations.”
SERAP contends that “granting the requested relief would challenge the impunity of those accountable for the missing oil funds intended for repairing the nation’s refineries and ensure their return for the sake of NNPCL’s victims—Nigerians.”
The organization asserts that “these disturbing allegations have hindered economic development, left many Nigerians in poverty, and led to significant government deficit spending.”
SERAP emphasizes that “the majority of Nigerians have seen minimal benefits from the nation’s oil wealth, while NNPCL has consistently failed to account for the missing billions desperately needed to fix or replace the country’s inefficient refineries.”
According to SERAP, “The Auditor-General has long reported instances of public funds disappearing from NNPCL, causing Nigerians to suffer from the consequences of these missing funds intended for refinery rehabilitation.”
The lawsuit was filed on behalf of SERAP by its attorneys, Kolawole Oluwadare, Oluwakemi Oni, and Valentina Adegoke, stating: “The lost oil revenue signifies a broader issue of accountability failure within NNPCL, tied to its ongoing inability to adhere to transparency and accountability standards.”
“The recently published 2021 audited report by the Auditor General of the Federation reveals that NNPCL failed to account for over N825 billion and USD$2.5 billion of public funds allocated for ‘refinery rehabilitation’ and repairs, among other oil revenues.”
“The Auditor-General suspects that the funds may be missing. NNPCL is reported to have inadequately accounted for over N82 billion [N82,951,595,510.47] meant for ‘refinery rehabilitation and repairs,’ derived from crude oil and gas sales between 2020 and 2021.”
“The Auditor-General warns that the money may be absent. He seeks that these funds be recovered and returned to the Federation Account, and mandates that NNPCL ensure amounts due are not deducted prior to remittance.”
“Additionally, NNPCL is reported to have failed to account for no less than N343 billion [N343,642,598,726.51], identified as proceeds from domestic crude sales, used without authority for pipeline maintenance costs.” “The Auditor-General expresses concern that these funds ‘may have been diverted’ and insists that they be reclaimed and returned to treasury accounts.”
“There’s also a report of NNPCL not accounting for over N83 billion [N83,659,813,739.99] derived from miscellaneous income in joint venture operations between 2016 to 2020, taken from a suspense account.”
“This has raised alarms as it ‘has forced the Federation to seek borrowings,’ prompting demands for recovery and remittance to treasury.”
“Moreover, NNPCL reportedly lacks accounting for over N204 billion [N204,853,744,047.39], which represents unjustified deductions from oil royalties for 2021.”
“The Auditor-General raises concerns that these funds may have been misappropriated and calls for recovery and remittance.” “Lastly, NNPCL has been unable to explain over N3.7 billion [N3,748,581,281.27] supposedly paid to a company regarding sales shortfalls, leading to fears that these funds might be missing and calls for recovery.”
“The company has also failed to account for over N28 billion [N28,654,179,867.00] related to outstanding bridging allowances for 2021.”
“Additionally, the corporation fell short on over N13.5 billion [N13,5559,658,148.91] from major oil marketers in unpaid bridging allowance claims for the same year.”
“These lapses have caused funding difficulties for the 2021 budget, prompting calls for recovery from both NNPC retail and the major oil marketers.” “Lastly, NNPCL is cited for failure to account for over N15 billion [N14,134,947,949.80 and N1,087,533,332.62] owed by 26 marketers for 2021, with calls for the recovery of these funds.”
“In total, NNPCL has been reported to neglect the collection of over $29.6 million [$29,648,970.36] in outstanding royalties meant for the Department of Petroleum Resources CBN account, which has led to worries concerning budget funding issues.”
“The corporation also failed to claim over $2 billion [$2,260,448,992.45] in outstanding royalties from oil companies for 2021, alongside over N48 billion [N48,218,163,192.67] also associated with overdue royalties.”
“The Auditor-General raises fears that ‘the funds may be missing’ and points out the potential impact on funding the 2021 budget, calling for recovery from oil companies.” No hearing date has yet been set for this lawsuit.
