Ayomide Awe
The Socio-Economic Rights and Accountability Project has dragged the Nigerian National Petroleum Company Limited before the Federal High Court in Abuja over the alleged failure to account for more than ₦211tn recorded in its 2023 audited financial statements.
The rights group is seeking a court order compelling the national oil company to explain and disclose documents relating to the ₦211.015tn listed under “Sundry Receivables” and “Accrued Expenses” in its audited accounts.
According to SERAP, the financial statements failed to provide adequate details on the transactions or sufficient information to enable public scrutiny of the huge sums.
The suit, marked FHC/ABJ/CS/1426/2027, was filed last week before the Federal High Court in Abuja.
In the suit, SERAP is asking the court to issue an order of mandamus directing NNPCL to account for the funds and release all records used in preparing and approving the disputed entries.
Specifically, the organisation wants the court to compel NNPCL to provide a detailed explanation and supporting documents for the ₦107.6tn recorded as “Sundry Receivables,” including the identities of the debtors, the amounts owed, the legal basis for the debts and the status of recovery efforts.
It is also requesting an order compelling the oil company to disclose documents relating to the ₦103.4tn listed as “Accrued Expenses,” including the identities of creditors and beneficiaries, the nature and legal basis of the liabilities and records establishing their legitimacy.
SERAP argued that there was an overriding public interest in the disclosure of the information, maintaining that NNPCL had a legal obligation to explain the transactions and demonstrate that the entries were lawful, accurate and backed by credible documentation.
The organisation further contended 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.
According to SERAP, public access to the information would promote transparency, strengthen fiscal accountability, prevent corruption and enhance oversight of the management of Nigeria’s oil wealth.
It argued that Nigerians have the right to know who owes the ₦107.6tn, who is entitled to the ₦103.4tn in accrued expenses and whether the transactions complied with relevant laws and accountability standards.
The suit was filed on behalf of SERAP by its lawyers, Oluwakemi Agunbiade, Kehinde Oyewumi, Andrew Nwankwo and Maryam Mumuni.
In the court documents, the organisation described “Sundry Receivables” as funds NNPCL claims are owed to it by individuals, companies or government agencies but have not yet been received, while “Accrued Expenses” represent liabilities incurred for goods, services or other obligations that are yet to be paid.
SERAP maintained that together, both entries amount to over ₦211tn, yet the financial statements did not adequately explain who owed the money, who would receive payment or provide documents to enable independent verification of the transactions.
The organisation also argued that NNPCL, despite operating under the Petroleum Industry Act, remains subject to the Freedom of Information Act because it is wholly owned by the Federal Government and manages Nigeria’s petroleum resources on behalf of the federation.
It added that the oil firm’s failure to respond to its Freedom of Information request within the timeframe stipulated by law amounted to a refusal, thereby necessitating judicial intervention.
SERAP further maintained that the information sought is not exempt from disclosure and concerns issues of significant public interest relating to transparency, good governance and prudent management of public resources.
It warned that secrecy in the management of oil revenues undermines public trust, weakens accountability and contravenes Nigeria’s constitutional and international obligations on transparency and anti-corruption.
No date has been fixed for the hearing of the suit.
As of the time of filing this report, NNPCL had yet to publicly respond to the lawsuit or the allegations contained in the court action.
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