The Socio-Economic Rights and Accountability Project (SERAP) has filed a
lawsuit against the Nigerian National Petroleum Company Limited (NNPCL)
“over its failure to account for approximately ₦5.9 billion reportedly spent on
the incorporation, transition, and rebranding of NNPC into NNPCL.”
The NNPC reportedly paid N2.9 billion for incorporation expenses from
petroleum product proceeds, while the National Petroleum Investment
Management Services (NAPIMS) also charged N2.9 billion to crude oil revenue
for the same purpose, bringing the total amount spent on the rebranding of
NNPC to NNPCL to ₦5.9 billion.
In the suit number FHC/ABJ/CS/1248/2026, filed last week at the Federal High
Court in Abuja, SERAP is seeking “an order of mandamus to direct and compel
the NNPCL to account for about ₦5.9 billion allegedly spent on the rebranding
of the NNPC to the NNPCL.”
SERAP is asking the court to “direct and compel the NNPCL to provide a
comprehensive reconciliation statement detailing the specific financial
transactions relating to the ₦5.9 billion expenditure, including the identities of
the contractors involved, and how the funds were utilized for the rebranding of
NNPC to NNPCL.”
SERAP is also asking the court to “direct and compel the NNPCL to disclose
the names and official positions of the government officials who authorized and
approved the release and expenditure of the ₦5.9 billion reportedly spent on the
rebranding of NNPC to NNPCL, and to clarify whether the expenditure
complied with applicable procurement laws and due-process requirements.”
In the suit, SERAP is arguing that: “There is a legitimate public interest in the
disclosure of the details sought. The NNPCL has a legal responsibility to
explain whether the ₦5.9 billion expenditure represents value for money,
constitutes lawful spending of public funds, and complies with applicable due
process requirements.”
SERAP is also arguing that, “There ought to be full transparency and
accountability regarding the reported ₦5.9 billion spent on rebranding NNPC to
NNPCL. Nigerians have the right to know who approved the expenditure, who
received the funds, the nature of the services rendered, and whether due process
and procurement requirements were strictly followed.”
According to SERAP, “the disclosure of the identities of the officials involved
and the processes followed in approving the expenditure would enable the
public to assess whether the expenditure was properly authorized, represented
value for money, and was undertaken in accordance with due process and
procurement requirements.”
“Given the size of the reported expenditure and the importance of transparency
in the management of public resources within the petroleum sector, there is an
urgent need for a prompt, thorough, and transparent disclosure of the details
surrounding the spending of the funds.”
The suit filed on behalf of SERAP by its lawyers, Oluwakemi Agunbiade,
Kehinde Oyewumi, and Andrew Nwankwo, read in part: “The alleged spending
of the ₦5.9 billion suggests a grave violation of the public trust and the
provisions of the Nigerian Constitution 1999 [as amended], national
anticorruption laws, and the country’s international anticorruption obligations.”
“The failure to account for the spending of the ₦5.9 billion on rebranding from
NNPC to NNPCL reflects a failure of NNPCL accountability more generally
and is directly linked to the institution’s continuing failure to uphold
transparency and accountability principles.”
“The refusal or failure of the NNPCL to provide a detailed account of the
expenditure undermines the right of access to information concerning the
management of public resources.”
“Senate Committee on Public Accounts reportedly raised serious concerns
regarding the expenditure of the ₦5.9 billion described as incorporation and
transition expenses allegedly incurred during the process of transforming the
NNPC into the NNPCL.”
“The Committee described the spending of the ₦5.9 billion as excessive,
unjustifiable, and deserving of further explanation, investigation, and legislative
scrutiny in the public interest.”
“The transformation of the national oil company from the NNPC into the
NNPCL occurred following the enactment of the Petroleum Industry Act (PIA)
2021, which required the corporation to become a commercially oriented
limited liability company fully owned by the federal government.”
“Section 13 of the Nigerian Constitution 1999 [as amended] requires all public
institutions including the NNPCL to conform to and apply the provisions of
Chapter II of the Constitution, while Section 15(5) mandates the public
institutions to abolish all corrupt practices and abuse of power.”
“Similarly, Section 16 of the Constitution requires the public institutions to
ensure that the material resources of the nation are harnessed and distributed as
best as possible to serve the common good.”
“Articles 5 and 9 of the UN Convention against Corruption require Nigeria to
ensure transparency and proper management of public funds.”
“Article 21 of the African Charter on Human and Peoples’ Rights recognizes
the right of peoples to freely dispose of their natural resources and provides that
the misappropriation of such resources shall give rise to the right of the people
to recovery and compensation.”