The Socio-Economic Rights and Accountability Project (SERAP) has sued the Nigerian National Petroleum Company Limited (NNPCL) for not explaining how it spent ₦211 trillion in oil money. This amount is listed in its 2023 audited financial statements as 'Sundry Receivables' and 'Accrued Expenses.'
NNPCL reported over ₦211 trillion (₦211,015,245,000,000) in its financial statements without giving enough details about the transactions or information for the public to check how the funds were used.
In the lawsuit No. FHC/ABJ/CS/1427/2026 filed last week at the Federal High Court in Abuja, SERAP wants the court to order NNPCL to account for the ₦211 trillion and provide all documents related to the transactions in its 2023 audited financial statements.
SERAP is asking the court to force NNPCL to give a detailed explanation and supporting documents for the ₦107.6 trillion listed as 'Sundry Receivables.' This includes the names of those who owe money, the amounts owed, the legal reasons for these receivables, and the status of recovery efforts.
Court Orders Requested
The organization also wants the court to make NNPCL disclose the full breakdown and supporting documents for the ₦103.4 trillion recorded as 'Accrued Expenses.' This includes the names of creditors and beneficiaries, the nature of the liabilities, and the documents that prove their legitimacy.
SERAP argues that NNPCL must show all records used to prepare and approve the ₦211 trillion listed as 'Sundry Receivables' and 'Accrued Expenses' in its 2023 financial statements.
In the suit, SERAP states that there is a public interest in revealing the requested information. They believe NNPCL has a legal duty to account for the ₦211 trillion and prove that the entries are correct, legal, and backed by credible documents.
According to SERAP, the Freedom of Information Act and the African Charter on Human and Peoples’ Rights give the public the right to access information held by public institutions like NNPCL. This access helps citizens to check how public resources are managed.
SERAP claims that sharing this information is necessary for transparency, preventing corruption, and ensuring good management of NNPCL’s operations.
They also emphasize that Nigerians deserve to know who owes the ₦107.6 trillion, who is entitled to the ₦103.4 trillion in accrued expenses, the legal basis for these transactions, and if they meet the laws and standards of accountability.
The suit, filed by SERAP’s lawyers, Oluwakemi Agunbiade, Kehinde Oyewumi, Andrew Nwankwo, and Maryam Mumuni, explains: 'Sundry Receivables are amounts of money that NNPCL says are owed to it by individuals, companies, or government entities but which it has not yet received.'
'Accrued Expenses are amounts that NNPCL says it owes to others for goods, services, or other obligations that have been incurred but not yet paid.'
Together, these entries make up over ₦211 trillion in NNPCL’s 2023 financial statements. Yet, the statements do not explain who owes the money, who is to be paid, the legal reasons for the transactions, or provide the documents needed for Nigerians to scrutinize these huge amounts.
The lack of disclosure from NNPCL undermines transparency, accountability, and public trust in managing Nigeria’s oil wealth. It stops Nigerians from knowing if the transactions are legal and properly documented.
NNPCL is still subject to the Freedom of Information Act because it is owned by the Federal Government and manages Nigeria’s oil resources and revenues for the Federation. The Petroleum Industry Act did not change NNPCL’s duty to operate transparently.
The funds managed by NNPCL are public funds since they come from Nigeria’s oil resources, which belong to the Federation. Nigerians have the right to check how these resources are handled.
NNPCL did not respond to SERAP’s Freedom of Information request within the time required by law. This lack of response is seen as a refusal, giving SERAP grounds to ask the court to compel NNPCL to disclose the information.
The information asked for is not exempt from disclosure and relates to major public interest issues like transparency and good governance.
Keeping oil revenue management secret goes against the rule of law and reduces public trust. It also conflicts with the Nigerian Constitution 1999 (as amended), the Fiscal Responsibility Act, and Nigeria’s commitments under various international agreements.
More transparency and accountability in managing Nigeria’s oil revenues are key to fighting corruption and ensuring that the country’s wealth benefits all Nigerians.
No date has been set for the hearing of the case.
Drop your comment
No comments yet — be the first to drop the gist 👇