The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Nigerian National Petroleum Company Limited (NNPCL) for its alleged failure to account for and explain the whereabouts of N825 billion and $2.5 billion earmarked for refinery rehabilitation and other oil revenue streams.
In a statement on Sunday, SERAP’s Deputy Director, Kolawole Oluwadare, said the legal action follows revelations contained in the 2021 audited report by the Auditor-General of the Federation, Adolphus Aghughu, which was released on November 27, 2024.
The development also comes after Aliko Dangote, President of the Dangote Group, recently declared that NNPCL refineries may never work again despite over $18 billion reportedly spent on them.
Filed at the Federal High Court in Lagos last Friday (Suit No. FHC/L/MISC/722/25), SERAP is seeking an order of mandamus to compel the NNPCL to publicly account for the missing funds and recover them into the Federation Account. The organisation is also demanding that those responsible be identified, surcharged for the amounts involved, and handed over to anti-corruption agencies for prosecution.
“The shocking allegations by the Auditor-General and Mr. Aliko Dangote suggest a grave violation of public trust and Nigeria’s constitutional and anti-corruption obligations,” SERAP argued in its suit.
According to SERAP, addressing these allegations is crucial to ending the cycle of impunity and recovering funds desperately needed to fix the country’s broken refineries and uplift millions of Nigerians trapped in poverty.
Billions Missing, Little Accountability
The suit outlines extensive concerns from the Auditor-General’s report, including:
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N82.9 billion deducted from crude oil sales for refinery repairs without proper accounting.
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Over N343 billion from domestic crude sales unilaterally deducted for pipeline maintenance.
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N83.6 billion in “miscellaneous income” withdrawn from the CBN/NNPC sinking fund.
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N204.8 billion in unjustified deductions from oil royalties due to the now Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
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N3.7 billion paid to a company as a shortfall on PMS sales.
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N28.6 billion in outstanding bridging allowances from NNPC retail.
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N13.5 billion owed by major oil marketers.
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N15 billion in debts from 26 marketers.
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$29.6 million and $2.2 billion in unpaid oil royalties from oil companies, alongside N48.2 billion also in unpaid royalties.
The Auditor-General warned these lapses have worsened Nigeria’s budget deficits and hindered economic development.
“Refineries Still Don’t Work”
SERAP highlighted that despite these massive expenditures, Nigeria’s refineries remain largely non-functional, echoing Dangote’s criticism that the country continues to waste resources while ordinary citizens see little benefit from oil wealth.
The organisation accused NNPCL of systemic failure to embrace transparency and accountability, which it argued is at the heart of Nigeria’s enduring refinery crisis.
“The vast majority of Nigerians have seen little benefit from the country’s oil wealth, while billions vanish under the guise of ‘refinery rehabilitation’,” SERAP said.
The suit, filed by SERAP lawyers Kolawole Oluwadare, Oluwakemi Oni, and Valentina Adegoke, emphasized that recovery of the missing funds and punishment of those responsible would mark an important step toward rebuilding public trust and tackling corruption.
No date has been set yet for the hearing.
