By Paul Joseph
The Socio-Economic Rights and Accountability Project (SERAP) has initiated legal action against the Nigerian National Petroleum Company (NNPC) Limited for allegedly failing to account for N22.3 billion, USD$49.7 million, £14.3 million, and €5.2 million in oil funds that are reportedly missing or misappropriated.
This lawsuit follows serious allegations highlighted in the 2022 audited report by the Auditor-General of the Federation, which was released on September 9, 2025.
Filed last Friday under case number FHC/ABJ/CS/195/2026 at the Federal High Court in Abuja, SERAP is requesting a mandamus order to compel NNPCL to provide an account of the alleged missing or diverted funds.
The organization is also seeking a court directive for NNPCL to reveal specific financial transactions related to the missing amounts, including details about disbursements, contractors, and individuals who received the funds.
In its argument, SERAP contends that the misappropriated oil revenues indicate a broader failure of accountability within NNPCL and are directly tied to the organization’s ongoing lack of transparency.
They assert that granting the requested relief would challenge the impunity of those responsible for the missing funds and ensure that the money is returned for the benefit of Nigerians, who are the victims in this situation.
SERAP further claims that these allegations have hindered the country’s economic development, leaving many Nigerians in poverty and depriving them of essential opportunities.
They note that the Auditor-General has consistently reported on the disappearance of oil funds from NNPCL, impacting the ability of the government to provide vital public services.
The organization argues that addressing corruption in the oil sector could help reduce poverty, improve access to basic public goods and services, and enhance the government’s capacity to fulfill its human rights and anti-corruption responsibilities.
The lawsuit, represented by SERAP’s lawyers Oluwakemi Agunbiade and Valentina Adegoke, states that the misappropriated oil revenues have further harmed the already fragile economy and contributed to excessive government deficit spending and borrowing.
Despite Nigeria’s vast oil wealth, ordinary citizens have seen little benefit due to rampant corruption, particularly within NNPCL, and a pervasive culture of impunity among wrongdoers.
The serious allegations raised by the Auditor-General indicate a significant breach of public trust and legal obligations.
“The NNPCL in 2019 ‘awarded a contract for over USD$8 million [$8, 211,432.00] ‘for the emergency procurement and installation of custody transfer meters on crude oil and product pipelines at eleven locations.’ The Auditor-General fears that ‘the payments may be for work not executed.’”
“The NNPCL ‘irregularly paid over €5 million [€5,165,426.26] to a contractor for the operation and maintenance of Atlas Cove Jetty Facility’ but without any documents.’ The Auditor-General fears that ‘the money may have been diverted’.”
“The NNPCL ‘paid over USD$1 million [$1,035,132.81] as legacy debt for charter hire of coastal vessels to a company without power of attorney.’ The Auditor-General fears that ‘the money may have been diverted’.’”
“The NNPCL ‘inflated a contract for over USD$1 million [$1,926,497.38] to hire a Time Charter for Carriage of Petroleum Products.’ The Auditor-General fears that ‘the money may have been diverted’.”
“The NNPCL ‘paid $156,000.00 to a consultant as an outstanding fee for advising on the financing of the rehabilitation of PHRC’, but ‘the payment is doubtful’’. The Auditor-General fears that ‘the money may have been diverted’.”
“The NNPCL ‘failed to deduct USD$8,355.18 as taxes from the payment of outstanding fees to a consultant for advising on the financing of the rehabilitation of PHRC.’”
“The NNPCL ‘irregularly paid over N82 million [N82,647,151.00] to a consultant for geotechnical/geophysical investigations of the proposed Independent Power Plant Project site.’ But ‘there was no document showing any evidence of payment’. The Auditor-General fears that ‘the money may have been diverted.’”
“The NNPCL ‘paid over N246 million [N246,196,566.00] for a contract for the purchase and supply of 2400 meters of seamless carbon steel pipe to Warri Refinery Petrochemicals Company Limited.’ But ‘the contract was not never executed and the items were not supplied.’”
“The NNPCL ‘failed to deduct over N46 million [N46,244,033.79] as taxes from a consultancy contract in December 2020 and 2021.’ The Auditor-General wants ‘the money recovered and remitted to the treasury.’”
“The NNPCL ‘irregularly paid N200 million [N200,000,000.00] as settlement for tax renegotiation.’ The Auditor-General fears that ‘the money may have been diverted.’”
“The NNPCL ‘failed to remit over N12 billion [N12,721,000,000.00] into the general reserve fund its operating surplus for December 2020.’ The Auditor-General fears that ‘the money may have been diverted.’”
“The NNPCL ‘irregularly paid N152 million [N152,000,000.00] to a company to execute a procurement contract requested from the Office of the Inspector-General of Police’, but ‘without any documents.’”
“The NNPCL ‘irregularly paid N25,000,000.00 as additional consultancy fee on a contract for accounting support.’ The Auditor-General fears that ‘the money may have been diverted.’ He wants ‘the money recovered and remitted to the treasury.’”
The NNPCL “disbursed more than USD $12 million [$12,444,313.22] to a contractor for the purchase and installation of a new diesel generator at the Mosimi Depot.” However, there is no proof that the project has been completed, even though the contract stipulated that it should be finished within 15 months of being awarded in 2020.
Additionally, the NNPCL “irregularly paid over N145 million [N145,933,833.00] for a contract related to the operation and maintenance of Electro-Mechanical Facilities in the NNPC Towers.” This contract was automatically renewed each year without allowing for a new bidding process that would enable other consultants to compete for the work. The Auditor-General is demanding an explanation for the expenditure.
Furthermore, the NNPCL “compensated 13 contractors over N1 billion [N1,212,192,409.97] for various projects between 2020 and 2021,” yet “there is no evidence of any completed work by these contractors, as no supporting documentation exists.”
No date has been set for the hearing of the lawsuit.
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