SERAP Drags NNPC to Court Over Alleged Missing $49.7m ₦22.3bn Oil Revenue

Spread the love

The Socio-Economic Rights and Accountability Project (SERAP) has instituted a legal action against the Nigerian National Petroleum Company (NNPC) Limited over its alleged failure to account for billions of naira and several million dollars in oil revenue said to be missing or improperly diverted.

The lawsuit is based on revelations contained in the 2022 audited report of the Auditor-General of the Federation, which was made public on September 9, 2025.

In suit number FHC/ABJ/CS/195/2026, filed last Friday before the Federal High Court in Abuja, SERAP is asking the court to compel NNPC Limited to fully explain the whereabouts of ₦22.3 billion, $49.7 million, £14.3 million, and €5.2 million allegedly unaccounted for from oil proceeds.

Specifically, SERAP is seeking an order of mandamus directing the oil company to provide detailed records of the transactions involving the disputed funds, including information on payments made, beneficiaries, contractors involved, and the purpose of each disbursement.

SERAP argued that the alleged diversion or mismanagement of oil revenues highlights deeper accountability failures within NNPC Limited and reflects a persistent disregard for transparency and public financial responsibility.

According to the organisation, granting the reliefs sought would help curb impunity, ensure recovery of the funds, and ultimately serve the interests of Nigerians who are the rightful beneficiaries of the country’s oil wealth.

SERAP further stated that the allegations have negatively affected Nigeria’s economic development, worsened poverty levels, and denied citizens access to essential public services.

The group noted that successive reports by the Auditor-General have repeatedly raised concerns over missing oil revenues at NNPC Limited, with Nigerians continuing to bear the consequences of funds that should have been used for national development.

SERAP also contended that tackling corruption in the oil sector would significantly reduce poverty, improve access to basic services, and strengthen the government’s ability to meet its constitutional, human rights, and anti-corruption obligations.

Details of Alleged Financial Irregularities

The suit, filed on SERAP’s behalf by its lawyers, Oluwakemi Agunbiade and Valentina Adegoke, stated that the alleged misappropriation of oil revenues has further weakened Nigeria’s fragile economy and contributed to rising government deficits and borrowing.

Despite Nigeria’s vast oil resources, the lawyers argued that ordinary citizens have gained little benefit due to entrenched corruption, particularly within NNPC Limited, and a culture of impunity protecting those responsible.

The lawsuit cited the Auditor-General’s findings as evidence of serious breaches of public trust, violations of constitutional provisions, and contraventions of national and international anti-corruption laws.

According to the audit report, NNPC Limited failed to properly account for more than ₦22.3 billion, $49.7 million, £14.3 million, and €5.2 million in oil-related revenue.

Among the examples cited, SERAP said NNPC reportedly paid over ₦292 million in 2020 for the construction of an Accident and Emergency facility along Airport Road in Abuja. However, the contractor allegedly abandoned the project after collecting the payment, raising concerns that the funds may have been diverted.

The Auditor-General reportedly recommended that the money be recovered from the contractor and remitted to the treasury.

In another case, NNPC was said to have spent over £14 million in 2021 on repairs to its London office, yet no evidence or documentation was provided to show that the funds were actually used for the stated purpose.

The audit also revealed that more than $22 million was irregularly paid to a contractor for lifting crude oil cargoes, while NNPC failed to explain discrepancies in crude oil revenue for the same period.

Additionally, SERAP pointed to irregular payments of over ₦2.3 billion as car cash options to 100 staff members in 2021 without approval from the National Salaries, Incomes and Wages Commission or supporting documentation.

The Auditor-General further flagged failures by NNPC to deduct statutory taxes amounting to over ₦247 million and $529,000 from payments made to contractors and service providers.

Other questionable transactions listed include undocumented payments exceeding ₦3.4 billion for various services, irregular contract renewals worth over $1.8 million, consultancy fees of over ₦355 million, and payments exceeding ₦474 million linked to refinery and infrastructure projects with no proof of execution.

The audit report also highlighted multiple instances of payments for contracts that were either not executed, inadequately documented, inflated, or prematurely paid, involving sums running into millions of dollars and billions of naira.

In several cases, the Auditor-General expressed concern that the funds may have been diverted and recommended their recovery and remittance to the federal treasury.