Reported by: Puis Althea | Edited by: Oravbiere Osayomore Promise.
The Socio-Economic Rights and Accountability Project has filed a lawsuit against the Nigerian National Petroleum Company Limited over its failure to explain and account for over ₦211 trillion recorded in its 2023 audited financial statements as "Sundry Receivables" and "Accrued Expenses." In the suit filed last week at the Federal High Court in Abuja, the rights group is seeking an order of mandamus compelling the state-owned oil company to disclose all documents and information relating to the financial entries, arguing that Nigerians have a right to know who owes the ₦107.6 trillion, who is entitled to the ₦103.4 trillion in accrued expenses, and whether the transactions comply with applicable laws and public accountability standards.
According to SERAP, the NNPCL reportedly recorded over ₦211,015,245,000,000 in its 2023 audited financial statements without adequately explaining the transactions or providing sufficient information to enable public scrutiny of the funds. The suit, marked FHC/ABJ/CS/1427/2026, was filed on behalf of SERAP by lawyers Oluwakemi Agunbiade, Kehinde Oyewumi, Andrew Nwankwo and Maryam Mumuni. In the court filings, SERAP described "Sundry Receivables" as amounts of money that NNPCL says are owed to it by individuals, companies or government entities but which it has not yet received, while "Accrued Expenses" are amounts that NNPCL says it owes to others for goods, services or other obligations that have been incurred but not yet paid.
SERAP is asking the court to compel the NNPCL to provide a detailed explanation, reconciliation and supporting documents relating to 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 recovery efforts. The rights group is also seeking an order compelling the company to disclose the complete breakdown and supporting documents relating to the ₦103.4 trillion recorded as "Accrued Expenses," including the identities of the creditors and beneficiaries, the nature and legal basis of the liabilities, and the documents establishing their legitimacy.
In the suit, SERAP argued that "there is an overriding public interest in the disclosure of the information sought" and that the NNPCL "has a legal duty to explain and account for the ₦211 trillion and demonstrate that the entries are accurate, lawful and supported by credible documentation." The organisation maintained that the Freedom of Information Act and the African Charter on Human and Peoples' Rights guarantee the public's right to access information held by public institutions, including the NNPCL, to enable citizens to scrutinise the management of public resources.
SERAP further argued that disclosure of the information is necessary to promote transparency, prevent corruption, strengthen fiscal accountability and ensure effective public oversight of NNPCL's operations. The rights group contended that "Nigerians have the right to know who owes the ₦107.6 trillion, who is entitled to the ₦103.4 trillion in accrued expenses, the legal basis for the transactions, and whether the entries comply with applicable laws and public accountability standards." SERAP also noted that the NNPCL failed to respond to its earlier Freedom of Information request within the period stipulated by law, which it said amounted to a refusal and justified legal action.
The suit comes amid growing public concern over the management of Nigeria's oil wealth and follows the Senate's ongoing investigation into discrepancies in NNPCL accounts from 2017 to 2023, including roughly ₦103 trillion in joint venture costs and operational expenses, and about ₦107 trillion in receivables and subsidies. The Federal High Court in Abuja is yet to fix a date for the hearing of the case. As the legal battle unfolds, the outcome of the suit could have significant implications for transparency and accountability in Nigeria's oil and gas sector, which remains the backbone of the country's economy.
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