SERAP Sues NNPCL Over N211 Trillion Financial Entries

The Socio-Economic Rights and Accountability Project (SERAP) has asked the Federal High Court in Abuja to compel the Nigerian National Petroleum Company Limited (NNPCL) to disclose details of N211.02 trillion recorded in two categories in its 2023 audited financial statements.

SERAP is seeking an order of mandamus requiring the national oil company to explain the transactions and provide documents supporting N107.6 trillion listed as “Sundry Receivables” and N103.4 trillion recorded as “Accrued Expenses”.

The organisation's legal action follows what it described as NNPCL's failure to respond to a Freedom of Information request seeking details of the entries.

The suit, marked FHC/ABJ/CS/1427/2026, was filed at the Federal High Court in Abuja by SERAP's lawyers, Oluwakemi Agunbiade, Kehinde Oyewumi, Andrew Nwankwo and Maryam Mumuni, according to a statement issued by the organisation's Deputy Director, Kolawole Oluwadare.

SERAP wants the court to order NNPCL to identify the individuals, companies or government entities linked to the N107.6 trillion in receivables, state how much each debtor owes, explain the legal basis for the amounts and provide information on efforts to recover the money.

It is also asking the court to compel NNPCL to disclose the identities of creditors and beneficiaries connected to the N103.4 trillion in accrued expenses, as well as the nature and legal basis of the liabilities and documents supporting the transactions.

The organisation is further seeking access to the records used in preparing and approving the two entries in NNPCL's 2023 audited financial statements.

SERAP challenges NNPCL's transparency obligations

SERAP argues that the case raises a broader public interest issue over access to information about the management of Nigeria's petroleum resources and oil revenues.

Sundry receivables generally refer to money a company records as owed to it by other parties, while accrued expenses are obligations incurred but not yet paid. SERAP contends that the figures in NNPCL's accounts do not provide sufficient information for the public to determine who owes the company, who is owed money, or the legal basis for the transactions.

The organisation maintains that disclosure is necessary to enable Nigerians to scrutinise the management of public resources, strengthen fiscal accountability and determine whether the transactions were properly documented and carried out in accordance with the law.

SERAP also argues that NNPCL remains subject to the Freedom of Information Act because it is wholly owned by the Federal Government and manages petroleum resources and oil revenues on behalf of the Federation.

It contends that the company's status as a commercial entity does not remove its obligation to provide information on the management of public resources.

The organisation further argues that the Petroleum Industry Act did not exempt NNPCL from its transparency obligations under the Freedom of Information Act.

According to SERAP, its failure to receive a response to its information request within the period stipulated by the law amounts to a refusal, giving the organisation grounds to seek judicial intervention.

The organisation's position is that greater disclosure would help Nigerians establish whether the financial entries are accurate, lawful and backed by credible documentation.

Case adds to scrutiny of Nigeria's oil wealth

The lawsuit comes amid continuing demands from civil society organisations for greater accountability in Nigeria's petroleum sector.

The restructuring of the former Nigerian National Petroleum Corporation under the Petroleum Industry Act gave NNPCL a commercial mandate, but its ownership by the Federal Government and role in the petroleum industry have continued to generate debate over the extent of public scrutiny that should apply to its operations.

The case therefore, goes beyond the specific figures in NNPCL's 2023 accounts. It could also test the extent to which the public can use freedom-of-information laws to obtain financial records from a commercially structured state-owned oil company.

SERAP posited that access to such information is essential for monitoring the management of Nigeria's oil wealth, preventing corruption and strengthening public confidence in the country's petroleum institutions.

As of Press time, No date has been fixed for the hearing of the suit.