The Socio-Economic Rights and Accountability Project (SERAP) has launched a lawsuit against the Nigerian National Petroleum Company (NNPC) Limited, citing its failure to account for an alleged sum of N22.3 billion, USD$49.7 million, £14.3 million, and €5.2 million in oil funds that are believed to have gone missing or been diverted.
This legal action stems from severe allegations contained in the 2022 audited report by the Auditor-General of the Federation, which was released on September 9, 2025.
In a lawsuit numbered FHC/ABJ/CS/195/2026, filed last Friday in the Federal High Court in Abuja, SERAP is requesting an order of mandamus to compel NNPCL to report on the alleged disappearance of N22.3 billion, USD$49.7 million, £14.3 million, and €5.2 million oil funds.
SERAP seeks the court's directive for NNPCL to disclose all financial transactions associated with the alleged missing funds, including details regarding expenditures, contractors, and individuals who received the payments.
The organization asserts that the mismanagement of oil revenues signifies a broader failure in accountability within NNPCL, directly linking it to ongoing issues of transparency and accountability within the organization.
Furthermore, SERAP contends that affirming the reliefs sought would challenge the culture of impunity for those implicated in the misappropriation of oil funds, ultimately ensuring that these resources are returned for the benefit of Nigerians affected by NNPCL's actions.
SERAP emphasized that these allegations have also hindered the nation's economic progress, perpetuated poverty among the majority of Nigerians, and robbed them of vital opportunities.
The Auditor-General has repeatedly reported on the disappearance of oil funds from NNPCL, with average Nigerians suffering due to these missing funds which were intended to finance essential public services.
SERAP argues that tackling the corruption crisis in the oil sector would mitigate poverty, improve access to basic public services for Nigerians, and enhance the government's capacity to fulfill its human rights and anti- corruption commitments.
This case is represented by SERAP's attorneys, Oluwakemi Agunbiade and Valentina Adegoke, who stated: "The diverted or misappropriated oil revenues have further damaged the already precarious economy and contributed to very high levels of deficit spending and borrowing by the government."
They further noted that despite Nigeria's vast oil wealth, most citizens have seen minimal benefits due to widespread grand corruption, especially within NNPCL, coupled with a persistent culture of impunity among offenders.
The Auditor-General's report raises concerns over severe breaches of public trust and violations of the Nigerian Constitution, along with national anti- corruption laws and international human rights obligations.
The report disclosed that NNPCL failed to account for over N22.3 billion, $49.7 million, £14.3 million, and €5.2 million in oil revenues as per the 2022 audit results published on September 9, 2025.
Among various examples, it was noted that in 2020, NNPCL reportedly disbursed over N292 million for a contract to build an Accident and Emergency facility near Airport Road in Abuja. However, the contractor abandoned the project despite receiving the payment.
The Auditor-General expressed concerns that the contract funds might have been diverted and called for recovery from the contractor to be remitted to the treasury.
The NNPCL was also reported to have spent over £14 million in 2021 to refurbish its London office, yet no documentation demonstrated that these funds were actually utilized.
Furthermore, NNPCL irregularly paid more than USD$22 million to a contractor for the lifting of nine cargoes of crude oil without providing an explanation as to why the amount due to the company covered a smaller value for crude during the same period.
Additionally, in 2021, NNPCL reportedly executed unauthorized payments exceeding N2.3 billion to 100 staff as cash alternatives for vehicle benefits without necessary approvals or supporting documentation. Similar irregularities were noted, with NNPCL allegedly neglecting to deduct statutory taxes on multiple payments to contractors.
Significantly, the NNPCL purportedly expended over N3 billion without any relevant records, raising fears over the possible diversion of these funds.
Evidence of financial discrepancies continued with various contracts reported on services and procurement, which the Auditor-General fears may have resulted in further diversions, reinforcing the need for increased scrutiny and accountability within the NNPCL.
No hearing date for the lawsuit has been set as of yet.
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