The Socio-Economic Rights and Accountability Project (SERAP) has initiated legal action against the Nigerian National Petroleum Company Limited (NNPCL) over its alleged failure to account for the disappearance of over N825 billion and $2.5 billion earmarked for the rehabilitation of the country’s ailing refineries and other oil revenues.
The lawsuit, filed at the Federal High Court in Lagos, follows revelations from the 2021 audited report by the Auditor-General of the Federation, published on November 27, 2024.
The report raised serious questions about the management of public funds by NNPCL. Adding fuel to the controversy, President of the Dangote Group, Aliko Dangote, recently stated that Nigeria’s refineries may never function again, despite the staggering $18 billion that has been spent on their rehabilitation over the years.
In suit number FHC/L/MISC/722/25, SERAP is asking the court to compel NNPCL to provide a detailed explanation of the whereabouts of the missing funds. The organization is also seeking an order mandating NNPCL to recover and remit the missing money to the Federation Account.
Beyond that, SERAP is urging the court to order NNPCL to identify those behind the disappearance of the funds, ensure they are surcharged for the full amount involved, and subsequently hand them over to anti-corruption agencies such as the EFCC and ICPC for investigation and prosecution.
“The grim allegations by the Auditor-General and Mr Aliko Dangote suggest a grave violation of the public trust,” SERAP said in its court filing. The group contends that the failure to account for the funds breaches the Nigerian Constitution and violates the country’s anti-corruption obligations under international law.
SERAP believes the court’s intervention would send a strong message against impunity and serve justice to the Nigerian public, who remain the ultimate victims. “Granting the reliefs sought would strike a blow against the impunity of those responsible for the missing oil money,” the organization stated.
The group warned that the disappearance of such significant sums has not only deepened poverty among the population but has also exacerbated the country’s economic woes, contributing to excessive government borrowing. “These grim allegations have undermined economic development and trapped the majority of Nigerians in poverty,” it said.
In a statement filed by SERAP’s legal team—Kolawole Oluwadare, Oluwakemi Oni, and Valentina Adegoke—the organization argued that NNPCL’s consistent failure to ensure transparency and accountability has facilitated the mismanagement of oil revenue.
According to the Auditor-General’s report, over N82 billion meant for refinery repairs was unaccounted for. The funds were reportedly deducted from crude oil and gas sales between 2020 and 2021. The Auditor-General expressed concern that the money might have been misappropriated and called for its recovery and remittance to the Federation Account.
The report also noted that more than N343 billion from domestic crude sales had been unilaterally deducted under the guise of pipeline maintenance and management costs. The Auditor-General suspects that these funds may have been diverted and recommended a full recovery and investigation.
Additionally, over N83 billion labeled as “miscellaneous income” from NNPCL’s joint venture operations between 2016 and 2020 was reportedly withdrawn from the CBN/NNPC sinking fund account. The Auditor-General fears this irregular withdrawal has contributed to the country’s reliance on borrowings.
Other troubling findings include over N204 billion in unexplained deductions from oil royalties due to the now-defunct Department of Petroleum Resources (DPR), N3.7 billion allegedly paid as a shortfall to a private company for PMS cargo sales, and nearly N28 billion in outstanding bridging allowance from NNPC retail.
Also cited was the failure to account for N13.5 billion in outstanding bridging allowance claims from major oil marketers and over N15 billion in debts owed by 26 marketers. These lapses, according to the Auditor-General, may have created funding gaps in the 2021 national budget.
Further, the NNPCL reportedly failed to collect $29.6 million in royalties due to the DPR, and over $2.2 billion and N48 billion in oil royalties owed by oil companies. The Auditor-General suspects these missing amounts may have severely impacted Nigeria’s financial capacity to meet its budgetary obligations.
Despite the gravity of these findings, no hearing date has been fixed for the case. SERAP insists that it is crucial for the judiciary to act swiftly and decisively to uphold public accountability and protect national resources from unchecked abuse.
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