The Socio-Economic Rights and Accountability Project (SERAP) has taken legal action against the Nigerian National Petroleum Company (NNPC) Limited, demanding explanations over large sums of oil revenue allegedly missing or improperly accounted for.
The case, filed at the Federal High Court in Abuja under suit number FHC/ABJ/CS/195/2026, seeks to compel the state oil company to clarify the whereabouts of funds reportedly amounting to ₦22.3 billion, $49.7 million, £14.3 million, and €5.2 million.
SERAP’s legal move follows findings contained in the Auditor-General of the Federation’s audited report for 2022, which was publicly released on September 9, 2025, and highlighted several financial discrepancies linked to oil proceeds.
Through the suit, the organisation is requesting a court order directing NNPC Limited to provide comprehensive records of the transactions tied to the disputed sums, including details of payments made, beneficiaries, contractors involved, and the intended purpose of each expenditure.
According to SERAP, the alleged mismanagement or diversion of oil revenues reflects deeper transparency and accountability challenges within the national oil company and underscores longstanding concerns about public financial oversight.
The group argued that judicial intervention would help recover any missing funds, discourage impunity, and protect the interests of Nigerians who are the rightful beneficiaries of the country’s petroleum resources.
It further stated that persistent allegations of unaccounted oil income have contributed to economic hardship, increased poverty levels, and reduced access to critical public services that should have been funded through national revenue.
SERAP noted that successive audit reports have repeatedly raised concerns about discrepancies in NNPC’s financial records, with citizens continuing to bear the consequences of funds meant for development.
The organisation also maintained that improving transparency in the oil sector could significantly strengthen government capacity to meet constitutional, anti-corruption, and human rights obligations while easing socio-economic pressures.
The lawsuit was filed on SERAP’s behalf by lawyers Oluwakemi Agunbiade and Valentina Adegoke, who argued that the alleged irregularities have weakened Nigeria’s already fragile economy and contributed to rising deficits and increased borrowing.
They contended that despite Nigeria’s vast petroleum wealth, entrenched corruption and a culture of impunity have prevented ordinary citizens from fully benefiting from the sector.
Citing the Auditor-General’s report, the legal team described the findings as evidence of serious breaches of public trust and potential violations of both domestic and international anti-corruption standards.
Among the issues raised, the audit indicated that NNPC did not properly account for more than ₦22.3 billion, $49.7 million, £14.3 million, and €5.2 million linked to oil-related transactions.
One example referenced was a payment exceeding ₦292 million reportedly made in 2020 for the construction of an Accident and Emergency facility along Airport Road in Abuja, which was allegedly abandoned after funds were released.
The Auditor-General was said to have recommended that the amount be recovered from the contractor and returned to the government treasury.
In another instance, over £14 million was reportedly spent on repairs to NNPC’s London office in 2021 without sufficient documentation to confirm how the money was utilised.
The audit also pointed to irregular payments exceeding $22 million to a contractor for crude oil lifting, alongside unexplained discrepancies in revenue records for the same period.
Additionally, SERAP highlighted payments of more than ₦2.3 billion given as car cash benefits to about 100 staff members in 2021 without approval from the National Salaries, Incomes and Wages Commission or supporting paperwork.
Further concerns included the failure to deduct statutory taxes worth over ₦247 million and $529,000 from contractor payments, as well as undocumented transactions exceeding ₦3.4 billion for various services.
Other questioned expenditures mentioned were irregular contract renewals valued at over $1.8 million, consultancy fees surpassing ₦355 million, and payments above ₦474 million tied to refinery and infrastructure projects with no proof of execution.
The audit report also cited multiple cases where contracts were either not executed, poorly documented, inflated, or paid for prematurely, involving amounts running into billions of naira and millions of dollars.
In several of these instances, the Auditor-General expressed concern that the funds might have been diverted and recommended that they be recovered and remitted to the federal treasury.
SERAP disclosed that, as of now, the court has not fixed a date for the hearing of the suit.
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