SERAP Sues NNPCL Over Alleged N5.8bn Rebranding Expenses

The Socio-Economic Rights and Accountability Project (SERAP) has dragged the Nigerian National Petroleum Company Limited (NNPCL) to court for allegedly failing to account for about N5.8 billion spent on the incorporation, transition and rebranding of the former Nigerian National Petroleum Corporation (NNPC) into NNPCL.

SERAP, in the case marked FHC/ABJ/CS/1248/2026 and filed before the Federal High Court in Abuja, sought an Order of Mandamus compelling the national oil company to disclose detailed information on its expenditure.

SERAP alleged that NNPC spent N2.9 billion on incorporation costs from petroleum product proceeds, while the National Petroleum Investment Management Services (NAPIMS) reportedly charged another N2.9 billion from crude oil revenue for the same purpose, bringing the total to about N5.8 billion.

The organisation also demanded a full reconciliation statement of all transactions related to this spending, including the identities of contractors involved and the specific use of the funds.

The applicant further prayed the court to order NNPCL to disclose the names and positions of the officials who authorised the release of the funds and to verify whether the expenditure complied with procurement laws and due process.

In an affidavit attached to the suit, SERAP maintained that transparency in the matter is essential to the public’s right to know, emphasising that Nigerians deserve to see whether the spending was justified, legal and efficient.

The group averred that transparency about the expenditures, including who approved them and how the money was spent, is vital to accountability and trust.

The applicant also stated that “revealing the officials involved and the approval processes would help the public assess if the expenditure was properly sanctioned, cost-effective, and compliant with legal standards.”

Given the scale and strategic importance of the petroleum sector, SERAP insists that NNPCL must promptly and transparently explain how the funds were allocated.

The organisation alleged that the expenditure raises issues about adherence to constitutional provisions, anti-corruption laws and Nigeria’s international obligations for transparency.

SERAP also argued that withholding details of this spending violates the public’s right to information regarding public resource management.

The group noted that the Senate Committee on Public Accounts expressed concern over the expenditure, describing it as excessive and unjustifiable, and called for further investigation.

The rebranding followed the 2021 Petroleum Industry Act (PIA), which transformed NNPC into a commercially oriented, government-owned limited liability company.

SERAP supports its case with provisions from the 1999 Constitution (as amended), the UN Convention against Corruption, and the African Charter on Human and Peoples’ Rights.

No date has yet been set for the court hearing.