The Socio-Economic Rights and Accountability Project (SERAP) has instituted legal action against the Nigerian National Petroleum Company Limited (NNPCL), demanding an explanation for ₦211 trillion recorded as “Sundry Receivables” and “Accrued Expenses” in the company’s 2023 audited financial statements.
The lawsuit, filed at the Federal High Court in Abuja and marked FHC/ABJ/CS/1426/2027, seeks an order compelling NNPCL to provide full details and supporting documents relating to the disputed financial entries.
According to SERAP, the state-owned oil company recorded ₦107.6 trillion as Sundry Receivables and ₦103.4 trillion as Accrued Expenses in its 2023 accounts without providing sufficient information to enable public scrutiny of the transactions.
The civic organisation is asking the court to direct NNPCL to identify the individuals, companies or government agencies that allegedly owe the ₦107.6 trillion, disclose the legal basis for the receivables, and explain efforts made to recover the outstanding amounts.
It also wants the court to compel the company to release a detailed breakdown of the ₦103.4 trillion accrued expenses, including the identities of beneficiaries and creditors, the nature of the liabilities, and documentary evidence supporting the obligations.
In addition, SERAP is requesting that NNPCL disclose all records and documents used in preparing and approving the financial entries contained in the audited accounts.
In the suit, SERAP argued that NNPCL has a statutory responsibility to account for public resources under its management and that Nigerians are entitled to know how revenues generated from the country’s petroleum resources are being managed.
The organisation maintained that the Freedom of Information Act guarantees citizens access to information held by public institutions and that NNPCL’s failure to respond to its earlier request amounts to a refusal under the law.
SERAP contended that transparency over the transactions is necessary to promote accountability, strengthen public confidence in the management of oil revenues, and prevent possible abuse of public funds.
According to the organisation, the company has not adequately explained who owes the funds classified as receivables, who is entitled to the accrued expenses, or whether the transactions were carried out in accordance with relevant laws and financial regulations.
The suit further argued that despite its incorporation under the Petroleum Industry Act, NNPCL remains wholly owned by the Federal Government and continues to manage petroleum resources on behalf of Nigerians, making it subject to the provisions of the Freedom of Information Act.
SERAP also maintained that secrecy surrounding the management of public oil revenues undermines the principles of good governance, fiscal responsibility and the rule of law.
The organisation said access to the requested information would enable Nigerians to independently verify the legitimacy of the financial entries and ensure that public resources are managed in a transparent and accountable manner.
The legal action was filed by SERAP’s counsel, Oluwakemi Agunbiade, Kehinde Oyewumi, Andrew Nwankwo and Maryam Mumuni.
No hearing date has yet been scheduled by the Federal High Court.
