ABUJA — The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Nigerian National Petroleum Company Limited (NNPCL). The suit, marked FHC/ABJ/CS/1248/2026, was filed at the Federal High Court in Abuja, demanding a comprehensive account of approximately ₦5.9 billion allegedly spent on the incorporation, transition, and rebranding of the former Nigerian National Petroleum Corporation (NNPC) into the NNPCL.

The Allegations: Dissecting the Expenditure

The litigation follows public reports and legislative concerns regarding the financial management of the NNPCL’s transition. According to the court documents filed by SERAP’s legal team—comprising Oluwakemi Agunbiade, Kehinde Oyewumi, and Andrew Nwankwo—the financial breakdown of the rebranding exercise involves two major outflows:

  • Petroleum Product Proceeds: Approximately ₦2.9 billion was reportedly drawn from revenue generated by petroleum products for incorporation expenses.

  • Crude Oil Revenue: An additional ₦2.9 billion was reportedly charged to crude oil revenue by the National Petroleum Investment Management Services (NAPIMS) for the same rebranding purpose.

This dual-source funding brings the total reported expenditure on the transformation process to roughly ₦5.9 billion, a figure that has drawn sharp criticism from various stakeholders, including the Senate Committee on Public Accounts, which previously described the spending as "excessive and unjustifiable."

Legal Demands and the Call for Mandamus

SERAP is seeking an order of mandamus from the Federal High Court to compel the NNPCL to provide a detailed reconciliation statement. The organization’s legal filing specifically demands the following disclosures:

  1. Transaction Breakdown: A full account of how the ₦5.9 billion was utilized, including the nature of services rendered.

  2. Contractor Transparency: The identities of the private contractors engaged for the rebranding process and the criteria used for their selection.

  3. Authorization and Approval: The names and official positions of the government officials who authorized the release and expenditure of these funds.

  4. Compliance Verification: A formal clarification on whether the expenditure adhered to the Petroleum Industry Act (PIA) 2021, public procurement laws, and due-process requirements.

Legal and Public Interest Arguments

In its filing, SERAP argues that the NNPCL’s failure to provide these details undermines the constitutional rights of Nigerians to access information regarding the management of public resources. The suit contends that the alleged expenditure constitutes a grave violation of the public trust and breaches the provisions of the 1999 Nigerian Constitution, national anti-corruption laws, and Nigeria’s international obligations under the United Nations Convention against Corruption and the African Charter on Human and Peoples' Rights.

SERAP emphasizes that the transformation from a state-owned corporation to a commercially driven limited liability company (under the PIA 2021) was intended to improve efficiency and accountability. The organization asserts that if the NNPCL continues to operate without disclosing how it manages billions in public funds, it risks failing the very purpose of its legal transition.

"There is a legitimate public interest in the disclosure of the details sought," the legal team stated in the court documents. "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."

Broader Implications for NNPCL Accountability

This lawsuit is part of a larger pattern of advocacy by civil society organizations seeking to ensure that the NNPCL, as a state-owned entity, operates with the same level of transparency as other public institutions. The Senate Committee on Public Accounts’ earlier concerns regarding the "unjustifiable" nature of these costs have provided additional weight to SERAP's demand for legislative and judicial scrutiny.

While no date has been fixed for the hearing, the case is being closely watched by industry analysts and governance experts as a test of the judiciary’s role in compelling state-owned enterprises to maintain fiscal discipline. For the NNPCL, the outcome could set a vital precedent regarding the depth of accountability required in its future financial dealings.