SERAP Sues NNPCL Over Alleged Failure to Account for N5.9 Billion Spent on Incorporation and Rebranding

The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Nigerian National Petroleum Company Limited (NNPCL) over its alleged failure to account for approximately N5.9 billion reportedly spent on the incorporation, transition, and rebranding of the Nigerian National Petroleum Corporation into NNPCL.

In the suit filed last week before the Federal High Court in Abuja, SERAP claimed that the NNPC paid N2.9 billion for incorporation expenses from petroleum product proceeds, while the National Petroleum Investment Management Services also charged N2.9 billion to crude oil revenue for the same purpose, bringing the total expenditure to about N5.9 billion. 

SERAP is seeking an order of mandamus compelling NNPCL to provide a comprehensive reconciliation statement detailing the specific financial transactions relating to the expenditure, including the identities of contractors involved and how the funds were utilised for the rebranding. The organisation is also seeking an order compelling NNPCL to disclose the names and official positions of government officials who authorised and approved the release and expenditure, and to clarify whether the expenditure complied with applicable procurement laws.

SERAP argued that the public has a legitimate interest in the disclosure of the details sought, and that NNPCL has a legal responsibility to explain whether the N5.9 billion expenditure represents value for money, constitutes lawful spending of public funds, and complies with applicable due process requirements.

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