The Socio-Economic Rights and Accountability Project (SERAP) has taken legal action against the Nigerian National Petroleum Company Limited (NNPCL) over its alleged failure to account for approximately ₦5.9 billion reportedly spent on the incorporation, transition, and rebranding of the former Nigerian National Petroleum Corporation (NNPC) into NNPCL.
In a suit filed at the Federal High Court in Abuja, SERAP is seeking a court order compelling the national oil company to explain how the funds were utilized and to disclose the officials and contractors involved in the process. According to SERAP, the NNPC allegedly spent ₦2.9 billion from petroleum product proceeds on incorporation expenses, while the National Petroleum Investment Management Services (NAPIMS) reportedly charged another ₦2.9 billion to crude oil revenue for the same purpose, bringing the total expenditure to about ₦5.9 billion.
SERAP is requesting an order of mandamus to direct NNPCL to account for the ₦5.9 billion allegedly spent on rebranding. The group also demands a comprehensive reconciliation statement detailing specific financial transactions, including the identities of contractors involved and how the funds were used. Additionally, SERAP seeks the disclosure of names and official positions of government officials who authorized and approved the expenditure, as well as clarification on whether the spending complied with procurement laws and due-process requirements.
The suit, marked FHC/ABJ/CS/1248/2026, was announced in a statement issued on Sunday by SERAP Deputy Director Kolawole Oluwadare. The legal action was filed on behalf of SERAP by lawyers Oluwakemi Agunbiade, Kehinde Oyewumi, and Andrew Nwankwo. According to SERAP, the Senate Committee on Public Accounts had previously raised concerns over the expenditure categorized as incorporation and transition costs during the transformation process, describing the spending as excessive, unjustifiable, and deserving of further explanation, investigation, and legislative scrutiny in the public interest.
SERAP argues that the public has a right to know how the funds were spent, insisting that transparency and accountability must guide the operations of the state-owned oil company. The organization stated that NNPCL has a legal responsibility to explain whether the ₦5.9 billion expenditure represents value for money, constitutes lawful spending of public funds, and complies with applicable due-process requirements. SERAP emphasized that full transparency and accountability are necessary regarding the reported ₦5.9 billion spent on rebranding, as Nigerians have the right to know who approved the expenditure, who received the funds, the nature of the services rendered, and whether due process and procurement requirements were strictly followed.
The organization added that disclosing the identities of the officials involved and the approval process would enable Nigerians to assess whether the expenditure was properly authorized and in line with extant laws. SERAP further argued that the alleged failure to account for the funds reflects broader accountability concerns within NNPCL, linking it to the institution's continuing inability to uphold transparency and accountability principles. The transition from NNPC to NNPCL was carried out under the Petroleum Industry Act (PIA) 2021, which transformed the national oil company into a commercially driven limited liability company wholly owned by the Federal Government.
SERAP also cited constitutional and international anti-corruption provisions, including Sections 13 and 15(5) of the Nigerian Constitution, Articles 5 and 9 of the United Nations Convention against Corruption, and Article 21 of the African Charter on Human and Peoples' Rights, in support of its case. No hearing date has been fixed for the suit.
