A campaign group, the Socio-Economic Rights and Accountability Project (SERAP), has taken legal action against the Nigerian National Petroleum Company (NNPCL). The group says the company has failed to properly explain how it has handled N211 trillion of oil money.
This case comes at a time when many Nigerians are struggling with high living costs and a weak economy. Oil is Nigeria’s main source of income, so any suggestion that large sums of money are not being properly accounted for is likely to cause public anger. SERAP says it is acting on behalf of ordinary citizens who have a right to know how their country’s wealth is being used.
The huge sum of money appears in the company’s 2023 audited accounts as ‘Sundry Receivables’ and ‘Accrued Expenses.’ According to SERAP, the accounts do not give enough detail for the public to check where the money has gone properly.
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The case was filed at the Federal High Court in Abuja last week. SERAP is asking the court to force NNPCL to give a full breakdown of the money.
The group argues that the public has a right to know about this money. It says NNPCL has a legal duty to be open about such large sums and to prove that the figures are correct and lawful.
SERAP points to the Freedom of Information Act and the African Charter on Human and Peoples’ Rights, which give the public the right to access information held by public bodies. It says this information is needed to stop corruption, improve openness, and allow proper public oversight of NNPCL.
SERAP also argues that Nigerians have the right to know who owes the N107.6 trillion listed as receivables, who is owed the N103.4 trillion listed as accrued expenses, and whether these transactions follow the law. It stresses that the money comes from Nigeria’s oil, which belongs to the whole country, so it is public money.
In its court papers, SERAP explains that ‘Sundry Receivables’ are amounts of money that NNPCL says it is owed but has not yet received. ‘Accrued Expenses’ are amounts the company says it owes to others for goods or services that have been received but not yet paid for. Together, these two items make up the N211 trillion in the accounts.
SERAP says the financial statements do not properly explain who owes the money, who is to be paid, or provide the documents needed for the public to check these huge sums. It adds that this lack of openness hurts public trust in how Nigeria’s oil wealth is managed.
The group also states that NNPCL is still subject to the Freedom of Information Act because it is fully owned by the government and manages oil revenues for the country. It says the Petroleum Industry Act did not remove NNPCL’s duty to be open and accountable.
SERAP says it sent a freedom of information request to NNPCL, but the company did not reply within the time limit set by law. Under the Act, this silence counts as a refusal, which is why SERAP has gone to court.
The group argues that the information it is asking for is not secret and is very much in the public interest. It says keeping oil revenues secret goes against the Nigerian Constitution, the Fiscal Responsibility Act, and international agreements like the UN Convention against Corruption and the African Charter on Human and Peoples’ Rights.
SERAP believes that greater openness in managing Nigeria’s oil money is essential to fight corruption, protect public funds, and make sure the country’s wealth benefits ordinary Nigerians.
A date for the court hearing has not yet been set.
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