SERAP Sues NNPCL Over Alleged Failure To Account For ₦211 Trillion In 2023 Financial Statements

The Socio-Economic Rights and Accountability Project (SERAP) has dragged the Nigerian National Petroleum Company Limited (NNPCL) before a Federal High Court in Abuja over what it described as the company’s failure to adequately explain and account for more than ₦211 trillion recorded in its 2023 audited financial statements.

According to SERAP, the sum of ₦211.015 trillion was listed under “Sundry Receivables” and “Accrued Expenses” in NNPCL’s audited accounts without sufficient details to enable public scrutiny of the transactions.

In the suit marked FHC/ABJ/CS/1427/2026 and filed last week, the advocacy group is seeking an order compelling NNPCL to account for the funds and disclose all documents relating to the entries contained in its 2023 financial statements.

SERAP is asking the court to direct the oil company to provide a detailed explanation and reconciliation of the ₦107.6 trillion recorded as “Sundry Receivables,” including the identities of the debtors, amounts owed, legal basis for the receivables and the status of efforts to recover the funds.

The organisation is also requesting the disclosure of documents relating to the ₦103.4 trillion listed as “Accrued Expenses,” including the identities of creditors and beneficiaries, the nature of the liabilities, their legal basis and supporting records establishing their legitimacy.

In addition, SERAP wants the court to compel NNPCL to release all records used in preparing and approving the ₦211 trillion entries in the audited accounts.

The group argued that there is an overriding public interest in making the information available, maintaining that NNPCL has a legal obligation to explain the transactions and demonstrate that the figures are accurate, lawful and backed by credible documentation.

SERAP further contended that the Freedom of Information Act and the African Charter on Human and Peoples’ Rights guarantee citizens access to information held by public institutions, including NNPCL, to facilitate oversight of public resources.

According to the organisation, disclosure of the information would promote transparency, strengthen fiscal accountability, prevent corruption and enable Nigerians to assess how the country’s oil wealth is being managed.

The suit stated that Nigerians have a right to know who owes the ₦107.6 trillion, who is entitled to the ₦103.4 trillion in accrued expenses, the legal basis for the transactions and whether the entries comply with relevant laws and accountability standards.

Filed by SERAP’s legal team comprising Oluwakemi Agunbiade, Kehinde Oyewumi, Andrew Nwankwo and Maryam Mumuni, the suit explained that “Sundry Receivables” represent funds NNPCL claims are owed to it by individuals, companies or government entities but have not yet been received.

It also described “Accrued Expenses” as liabilities NNPCL says it owes for goods, services or other obligations already incurred but not yet paid.

SERAP argued that together, the two entries account for more than ₦211 trillion in NNPCL’s 2023 audited financial statements, yet the accounts do not sufficiently identify the parties involved, explain the legal basis of the transactions or provide supporting documentation for independent verification.

The organisation maintained that NNPCL remains subject to the Freedom of Information Act because it is wholly owned by the Federal Government and manages petroleum resources and oil revenues on behalf of the federation.

According to SERAP, the Petroleum Industry Act does not exempt the company from its obligations to operate transparently and accountably.

The group also alleged that NNPCL failed to respond to its Freedom of Information request within the timeframe stipulated by law, a situation it said amounts to a refusal and justifies judicial intervention.

SERAP further argued that the information sought is not exempt from disclosure under the Freedom of Information Act, noting that the matter concerns transparency, good governance, fiscal responsibility and the management of public resources.

The organisation added that secrecy surrounding oil revenue management undermines public trust, weakens the rule of law and runs contrary to Nigeria’s constitutional provisions, financial regulations and international anti-corruption commitments.

No date has been fixed for hearing the suit.