The Socio-Economic Rights and Accountability Project (SERAP) has initiated legal action against the Nigerian National Petroleum Company Limited (NNPCL), demanding a full accounting of roughly ₦5.9 billion reportedly spent during its corporate transition and rebranding phase.
The lawsuit, registered under suit number FHC/ABJ/CS/1248/2026 at the Federal High Court in Abuja, seeks an order of mandamus to compel the state-owned energy firm to release comprehensive financial records detailing how the funds were utilized.
According to court documents submitted by the non-governmental organization, the total expenditure consists of two separate deductions of ₦2.9 billion each. One portion was reportedly pulled from petroleum product proceeds to cover incorporation expenses, while the National Petroleum Investment Management Services allegedly deducted an identical sum from crude oil revenues for the same purpose.
SERAP is requesting that the court force NNPCL to provide a detailed reconciliation statement. This statement must disclose the specific identities of all third-party contractors involved, the breakdown of services rendered, and the names and official titles of the government administrators who authorized the multi-billion naira disbursement. Furthermore, the suit demands clarity on whether the transition budget conformed with national procurement laws and due-process standards.
The financial oversight body’s legal challenge comes in the wake of scrutiny by the Senate Committee on Public Accounts, which previously flagged the transition and incorporation expenses during its review of the commercialization process. Legislative auditors characterized the ₦5.9 billion price tag as excessive and unjustified, calling for deeper investigative scrutiny in the public interest.
In its legal argument, SERAP maintained that as a government-owned commercial entity operationalized under the Petroleum Industry Act (PIA) 2021, NNPCL remains legally obligated to demonstrate transparency. The group argued that the public has a fundamental right to verify if public funds were managed lawfully and whether the expenditure provided actual value for the money spent.
The organization supported its mandate by citing constitutional provisions regarding public accountability, alongside international anti-corruption frameworks, including the UN Convention against Corruption and the African Charter on Human and Peoples’ Rights.
A definitive hearing date for the suit has yet to be scheduled by the Federal High Court.
