SERAP Sues NNPCL Over Alleged Misappropriation of ₦825 Billion, $2.5 Billion for Refinery TAM

The Socio-Economic Rights and Accountability Project (SERAP) has dragged the Nigerian National Petroleum Company Limited (NNPCL) before the Federal High Court in Lagos over the alleged failure to account for ₦825 billion and $2.5 billion allocated for the rehabilitation of Nigeria’s four refineries. The suit, filed on Friday, and marked FHC/L/MISC/722/2025, seeks an order compelling the NNPCL to fully disclose and account for the funds said to have been earmarked for repairing the refineries in Port Harcourt, Warri, and Kaduna. SERAP is also asking the court to order the recovery of the allegedly missing funds and their remittance to the Federation Account. According to SERAP, the funds in question were flagged in the 2021 report of the Auditor-General for the Federation, which was published in November 2024. The report indicated that significant sums disbursed for refinery repairs between 2020 and 2021 remain unaccounted for, suggesting large-scale financial irregularities within the NNPCL. The report also uncovered several other financial discrepancies, including ₦343 billion deducted from crude oil sales for pipeline maintenance, ₦81 billion paid to contractors without clear records, ₦204 billion in unverified royalty deductions, and ₦83.7 billion withdrawn from a sinking fund without appropriate justification. An additional ₦151 billion in various unauthorized deductions was also not remitted to the Federation Account. SERAP, through its deputy director Kolawole Oluwadare, argued that the failure of NNPCL to transparently account for public funds is in direct violation of the Nigerian Constitution and the company’s fiduciary obligations, especially in light of the country’s ongoing economic challenges. The organization stressed that the lack of operational refineries despite the huge funds allocated over the years further underscores the need for full accountability. The organization also urged the court to mandate the referral of the case to the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) for further investigation and possible prosecution of anyone found culpable. NNPCL has yet to issue an official response to the lawsuit as of the time of filing this report. The case is expected to test the accountability mechanisms in Nigeria’s oil and gas sector, particularly under the newly commercialized structure of the NNPCL. The court is yet to fix a date for hearing.