The Socio-Economic Rights and Accountability Project has dragged the Nigerian National Petroleum Company Limited before a Federal High Court in Abuja over the alleged failure of the national oil company to account for about ₦5.9 billion reportedly spent on its transition and rebranding from NNPC to NNPCL.
In a suit filed at the Federal High Court, Abuja, SERAP is asking the court to compel NNPCL to provide a detailed account of how the funds were spent, including the identities of contractors involved, services rendered, and officials who approved the expenditure.
According to the civic organisation, approximately ₦2.9 billion was allegedly paid as incorporation expenses from proceeds generated from petroleum products, while another ₦2.9 billion was reportedly charged by the National Petroleum Investment Management Services (NAPIMS) to crude oil revenues for the same exercise, bringing the total rebranding cost to about ₦5.9 billion.
Demand for Full Transparency
SERAP argued that Nigerians have a constitutional right to know how public resources were spent, particularly in a sector as strategic as the petroleum industry.
The organisation is seeking a court order compelling NNPCL to publish a comprehensive reconciliation statement showing how the funds were utilised, the companies that received payments, and whether the spending complied with procurement regulations and due process requirements.
The group also wants NNPCL to disclose the names and official positions of government officials who authorised and approved the expenditure.
Public Interest at Stake
According to SERAP, the size of the expenditure and the public nature of the funds involved make transparency non-negotiable.
The organisation maintained that disclosure would help Nigerians determine whether the spending represented value for money and whether the rebranding exercise complied with the provisions of the Constitution, anti-corruption laws, and international transparency standards.
SERAP further argued that failure to provide details of the expenditure undermines public trust and raises concerns about accountability within the country’s oil sector.
Senate Raised Concerns
The suit also referenced concerns reportedly raised by the Senate Committee on Public Accounts, which questioned the justification for the expenditure and called for further investigation.
The committee reportedly described the spending as excessive and deserving of closer scrutiny in the public interest.
Background
The transformation of the former Nigerian National Petroleum Corporation (NNPC) into NNPCL followed the implementation of the Petroleum Industry Act (PIA) 2021, which converted the state-owned corporation into a commercially oriented limited liability company wholly owned by the Federal Government.
SERAP insists that while the transition was legally required, the public deserves a full explanation of how nearly ₦6 billion was spent during the process.
As of the time of filing this report, no date has been fixed for the hearing of the suit, and NNPCL has yet to issue an official response to the legal action.
The case is expected to reignite public debate over transparency, accountability, and the management of public funds in Nigeria’s oil and gas sector.
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