Rita Odafe
The Socio-Economic Rights and Accountability Project (SERAP) has initiated legal action against the Nigerian National Petroleum Company (NNPC) Limited, claiming that it failed to explain the disappearance of N500 billion which was allegedly not transferred to the Federation Account between October and December 2024.
This legal move comes after the World Bank raised concerns that from the reported N1.1 trillion revenue generated through crude oil sales and other earnings in 2024, NNPC only submitted N600 billion, resulting in an unaccounted deficit of N500 billion.
In its reply to SERAP’s Freedom of Information (FoI) request, the NNPC asserted through its legal representatives, Afe Babalola and Co, that the FoI Act was not applicable to its operations.
In the legal filing numbered FHC/L/MSC/553/2025, submitted last Friday at the Federal High Court in Lagos, SERAP is requesting: “an order of mandamus to instruct the NNPC to account for the purported missing N500 billion, which it allegedly failed to transfer to the Federation Account between October 2024 and December 2024.”
SERAP also seeks the court’s mandate to “require the NNPC to involve relevant anti-corruption agencies to investigate the utilization and location of the said N500 billion and ensure its prompt recovery and allocation to the Federation Account.”
Additionally, SERAP is urging the court to “direct the NNPC to identify individuals believed to be accountable for the missing oil funds, charge them the full amount involved, and turn them over to appropriate anti-corruption bodies for inquiry and prosecution.”
In its argument, SERAP asserts that “The NNPC is obliged to adhere to the Nigerian Constitution 1999 [as amended], the Freedom of Information Act, along with its international human rights and anti-corruption commitments while performing its official duties.”
Furthermore, SERAP claims that “The absence of these oil revenues has further deteriorated the already vulnerable economic conditions in Nigeria and has fueled increased government deficit spending and a severe national debt crisis.”
They continue to argue that “The unaccounted oil revenue highlights a broader lack of accountability on the part of NNPC and is directly tied to its ongoing failure to adhere to the standards of transparency and responsibility.”
SERAP insists that, “The Supreme Court recently ruled that the Freedom of Information Act applies to public records in the Federation, which includes documents held by the NNPC.”
The lawsuit, filed by SERAP’s legal team including Kolawole Oluwadare, Ms. Oluwakemi Oni, and Ms. Valentina Adegoke, states: “Nigerians continue to suffer the consequences of these unaccounted public funds that should contribute to the nation’s developmental goals.”
“There is a clear public interest in disclosing the requested information. The NNPC has a legal duty to account for and explain the status of the missing oil funds.”
“The nation’s oil resources should be used exclusively for the benefit of the Nigerian populace, considering both the current and future generations.”
“Absence of the full recovery and remittance of the missing N500 billion oil revenues might exacerbate the severe economic plight and keep Nigerians from accessing essential public goods and services.”
“Nigerians deserve clarification on why the NNPC did not channel the subsidy removal savings to the Federation Account and why it’s withholding allocations due to states and local governments, in violation of the Nigerian Constitution.”
“The NNPC’s failure to transfer these funds represents a significant breach of public trust and contradicts the Nigerian Constitution, national anti-corruption regulations, and the nation’s obligations regarding anti-corruption.”
“Even though Nigeria is rich in oil, ordinary citizens see minimal benefits from oil revenues due to pervasive grand corruption and a deep-seated culture of impunity among wrongdoers.”
“Addressing corruption in the oil sector could help reduce poverty, improve access to vital public goods and services for Nigerians, and enable the government to fulfill its human rights and anti-corruption responsibilities.”
“The Nigerian Constitution, the Freedom of Information Act, and the nation’s commitments towards anti-corruption and human rights emphasize that citizens should have the right to know about the management of their resources.”
“Reports from the Auditor-General of the Federation and the Nigeria Extractive Industries Transparency Initiative (NEITI) have long documented the misappropriation of oil funds originating from the NNPC.”
“The World Bank has recently pointed out that from the N1.1 trillion in revenue derived from crude oil sales and other income in 2024, NNPC only contributed N600 billion, leaving an unaccounted shortfall of N500 billion.”
“These revenues and incomes were supposed to be deposited into the Federation Account and distributed among all governmental tiers, but the NNPC reportedly failed to comply.”
“SERAP highlights that Section 15(5) of the Nigerian Constitution necessitates that public institutions eliminate corruption and power abuses.”
“Moreover, Section 13 of the Nigerian Constitution places a clear obligation on the NNPC to comply with and apply the directives found in Chapter 2 of the constitution.”
“Nigeria is bound by legally enforceable commitments under the UN Convention against Corruption to promote accountability in public resource management. Articles 5 and 9 of this convention demand that the NNPC ensure accountability in managing public affairs and resources.”
“These commitments must be fully honored.”
“The disappearance of oil revenues has hindered Nigerians in exercising their economic and social rights, preventing them access to critical public services, particularly during the ongoing cost-of-living crisis.”
“If the NNPC had duly accounted for and remitted the claimed N500 billion to the Federation Account, it’s likely that more resources would have been allocated toward meeting economic and social rights, like enhancing spending on public goods and services.”
“The Freedom of Information Act, Section 39 of the Nigerian Constitution, article 9 of the African Charter on Human and Peoples’ Rights, and article 19 of the International Covenant on Civil and Political Rights guarantee everyone the right to be informed regarding the missing N500 billion in oil revenue.”
No specific date has been announced for the court hearing of this lawsuit.
