SERAP Sues NNPCL Over Alleged ₦5.9 Billion Spent on Rebranding and Incorporation

The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Nigerian National Petroleum Company Limited (NNPCL), demanding a full account of approximately ₦5.9 billion reportedly spent during the transition of the former Nigerian National Petroleum Corporation (NNPC) into the newly incorporated NNPCL.

According to SERAP, the expenditure relates to the incorporation, restructuring, and rebranding process that transformed the state-owned oil company into a limited liability company under the provisions of the Petroleum Industry Act (PIA) 2021.

The civil society organization is seeking judicial intervention to compel NNPCL to disclose how the funds were spent, who authorized the expenditure, and whether the process complied with Nigeria’s procurement laws and due process requirements.

In court documents filed before the Federal High Court in Abuja, SERAP argued that there is a strong public interest in understanding how public funds were utilized during the transition process. The organization is requesting an order directing NNPCL to provide a comprehensive reconciliation of all financial transactions connected to the reported ₦5.9 billion expenditure.

According to the suit, NNPC allegedly spent about ₦2.9 billion from proceeds generated through petroleum product sales for incorporation-related expenses. SERAP further claimed that the National Petroleum Investment Management Services (NAPIMS) reportedly charged an additional ₦2.9 billion to crude oil revenue for similar purposes, bringing the total expenditure to approximately ₦5.9 billion.

The organization wants NNPCL to disclose detailed information regarding the contractors involved in the project, the specific services rendered, and how the funds were ultimately utilized throughout the rebranding and transition process.

SERAP is also seeking the release of information identifying the government officials who approved and authorized the expenditure. It argues that Nigerians have a right to know whether the spending represented value for money and whether all necessary legal and administrative procedures were followed.

The lawsuit follows concerns reportedly raised by the Senate Committee on Public Accounts, which questioned the scale of the expenditure and called for greater scrutiny. According to SERAP, the committee described the spending as excessive and deserving of further explanation and investigation in the public interest.

The advocacy group maintains that transparency is essential, particularly given the strategic importance of NNPCL to Nigeria’s economy. It argues that accountability in the management of public resources is necessary to build trust and ensure compliance with constitutional and legal obligations.

SERAP further contends that the inability to clearly account for the reported expenditure reflects broader concerns about transparency within the country’s oil sector. The organization believes that a full disclosure would allow Nigerians to independently assess whether the funds were appropriately spent and whether procurement and financial regulations were observed.

The transformation of NNPC into NNPCL was one of the key reforms introduced under the Petroleum Industry Act, which mandated the conversion of the national oil company into a commercially driven limited liability entity wholly owned by the Federal Government. The reform was intended to improve efficiency, transparency, and competitiveness within Nigeria’s petroleum industry.

In support of its case, SERAP cited provisions of the Nigerian Constitution, the United Nations Convention Against Corruption, and the African Charter on Human and Peoples’ Rights, arguing that citizens have a legitimate right to access information relating to the management of public resources.

As of the time of filing, no hearing date has been announced by the Federal High Court. The case is expected to draw significant public attention, given the ongoing national conversation around transparency, accountability, and governance within Nigeria’s oil and gas sector.

The outcome of the lawsuit could have far-reaching implications for public sector accountability and may set an important precedent regarding access to information on government-related expenditures in Nigeria.