SERAP Sues NNPCL Over Failure to Account for ₦211 Trillion 

The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Nigerian National Petroleum Company Limited (NNPCL), alleging that the company failed to adequately explain and account for more than ₦211 trillion recorded as "Sundry Receivables" and "Accrued Expenses" in its 2023 audited financial statements.

According to SERAP, the financial statements recorded a total of ₦211.015 trillion under the two accounting categories without providing sufficient details or supporting documentation to enable public scrutiny of the transactions.

The suit, marked FHC/ABJ/CS/1427/2026, was filed last week at the Federal High Court in Abuja. SERAP is seeking an order of mandamus compelling NNPCL to disclose all documents and information relating to the transactions and to provide a full account of the funds reflected in its 2023 audited accounts.

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

The organization is also requesting a comprehensive breakdown of the ₦103.4 trillion listed as Accrued Expenses, including the identities of the creditors and beneficiaries, the nature and legal basis of the liabilities, and supporting documents establishing their legitimacy.

In addition, SERAP is seeking an order compelling NNPCL to disclose all records used in preparing and approving the entries recorded as Sundry Receivables and Accrued Expenses in the company's 2023 audited financial statements.

In its court filings, SERAP argues that there is an overriding public interest in the disclosure of the information, maintaining that NNPCL has a legal duty to explain and justify the accounting entries and demonstrate that they are accurate, lawful, and supported by credible documentation.

The organization further contends that the Freedom of Information Act and the African Charter on Human and Peoples' Rights guarantee Nigerians the right to access information held by public institutions, including NNPCL, to ensure transparency and accountability in the management of public resources.

SERAP also argues that disclosing the information would promote transparency, strengthen fiscal accountability, help prevent corruption, and enable effective public oversight of NNPCL's operations.

According to the organization, Nigerians have the right to know who owes the ₦107.6 trillion recorded as receivables, who is entitled to the ₦103.4 trillion in accrued expenses, the legal basis for the transactions, and whether the accounting entries comply with applicable laws and public accountability standards.

The lawsuit was filed on behalf of SERAP by its lawyers, Oluwakemi Agunbiade, Kehinde Oyewumi, Andrew Nwankwo, and Maryam Mumuni.

SERAP explains that Sundry Receivables represent amounts NNPCL says are owed to it by individuals, companies, or government entities but have not yet been received, while Accrued Expenses represent obligations the company says it has incurred for goods, services, or other liabilities that remain unpaid.

The organization argues that, although these two entries account for more than ₦211 trillion in NNPCL's 2023 audited financial statements, the accounts do not adequately identify the parties involved, explain the legal basis for the transactions, or provide the supporting documents necessary for independent public verification.

SERAP further maintains that NNPCL's failure to disclose the requested information undermines transparency, accountability, and public confidence in the management of Nigeria's oil wealth. It also argues that the Petroleum Industry Act did not remove NNPCL's obligations under the Freedom of Information Act, insisting that the company remains subject to public accountability because it is wholly owned by the Federal Government and manages petroleum resources on behalf of the federation.

The organization also alleges that NNPCL failed to respond to its Freedom of Information request within the timelines prescribed by law, a failure it says amounts to a refusal under the Act and justifies judicial intervention.

SERAP contends that the information sought is not exempt from disclosure and relates to matters of significant public interest involving fiscal accountability, good governance, and the prudent management of Nigeria's oil revenues.

According to the organization, greater transparency in the management of Nigeria's oil wealth is essential to combating corruption, safeguarding public resources, and ensuring that the country's natural wealth benefits its citizens.

No date has been fixed for the hearing of the suit.