The Socio-Economic Rights and Accountability Project (SERAP) has initiated legal action against the Nigerian National Petroleum Company Limited (NNPCL). The organization seeks a court order compelling the oil company to provide a detailed accounting of approximately N5.9 billion allegedly spent on the incorporation, transition, and rebranding of the Nigerian National Petroleum Corporation (NNPC) into NNPCL.

The lawsuit was filed at the Federal High Court in Abuja. SERAP disclosed its legal action against the state-owned oil company in a statement.

This legal move comes exactly one month after SERAP urged President Bola Tinubu to order an investigation into the N5.9 billion reportedly spent on the rebranding of the NNPC to NNPCL.

SERAP is asking the court to compel NNPCL to provide a detailed reconciliation of the N5.9 billion expenditure. This includes information on the specific transactions, the contractors who received the funds, and how the money was utilized during the rebranding process.

The organization also seeks an order directing NNPCL to reveal the identities and official positions of government officials who approved the release and spending of these funds. Furthermore, SERAP wants clarification on whether the expenditure complied with procurement laws and due-process requirements.

SERAP argued that there is a legitimate public interest in disclosing the sought-after details. The organization stated that NNPCL has a legal responsibility to explain whether the N5.9 billion expenditure represents value for money, constitutes lawful spending of public funds, and adheres to applicable due process requirements.

According to SERAP, transparency regarding this expenditure is crucial for Nigerians to assess whether the spending was properly authorized and if due process was followed. The organization contended that the alleged spending raises concerns about accountability and public trust, and that failure to provide details undermines citizens' right to access information on the management of public resources.

The lawsuit stems from concerns previously raised by the Senate Committee on Public Accounts regarding the approximately N5.9 billion reportedly spent during the transformation of NNPC into NNPCL.

Details cited by SERAP indicate that NNPC allegedly paid N2.9 billion for incorporation expenses from petroleum product proceeds. Additionally, the National Petroleum Investment Management Services (NAPIMS) reportedly charged another N2.9 billion to crude oil revenue for the same purpose, bringing the total expenditure to about N5.9 billion.

The Senate committee reportedly described the spending as excessive and unjustifiable, calling for further explanation, investigation, and legislative scrutiny.

The rebranding exercise followed the enactment of the Petroleum Industry Act (PIA) 2021, which transformed NNPC into NNPCL, a commercially oriented limited liability company wholly owned by the Federal Government.

In its court filings, SERAP argued that NNPCL has a constitutional and legal obligation to ensure transparency and accountability in the management of public funds and resources.

This lawsuit adds to a growing list of accountability-related concerns surrounding NNPCL. On March 6, the Senate Committee on Public Accounts summoned the immediate past management of NNPCL, including former Group Chief Executive Officer Mele Kyari, over alleged financial discrepancies amounting to N210 trillion in the company’s audited financial statements between 2017 and 2023.

Lawmakers stated they identified about N103 trillion recorded as accrued expenses in NNPCL’s 2022 financial statements, including retention fees, legal fees, and audit fees, without detailed breakdowns.

Meanwhile, SERAP recently secured a court victory against the National Assembly. The Federal High Court in Lagos declared unlawful the legislature’s controversial N110 billion expenditure on vehicles and allowances for lawmakers.

The suit had challenged plans by the National Assembly to spend N40 billion on 465 vehicles for lawmakers and allocate an additional N70 billion as support allowances for newly elected members amid worsening economic conditions.

The ruling reinforced calls for greater transparency and accountability in the management of public resources, a principle SERAP asserts also underpins its latest legal action against NNPCL.