The Socio-Economic Rights and Accountability Project (SERAP) has initiated legal proceedings against the Nigerian National Petroleum Company Limited (NNPCL), seeking to compel the state oil firm to account for billions of naira and millions in foreign currency allegedly missing or diverted from oil revenues.
The lawsuit, filed last Friday at the Federal High Court in Abuja under suit number FHC/ABJ/CS/195/2026, centers on what SERAP describes as systematic financial irregularities that have contributed to Nigeria’s economic challenges and deepening poverty levels.
At the heart of the legal action are allegations totaling over N22.3 billion, alongside USD $49.7 million, £14.3 million, and €5.2 million in unaccounted oil revenues. SERAP’s case draws heavily from the 2022 audited report of the Auditor-General of the Federation, published in September 2025, which identified numerous questionable financial transactions by NNPCL.
The civil rights organization is seeking an order of mandamus—a judicial remedy compelling a public body to perform its legal duties—to force NNPCL to provide a full accounting of the alleged missing funds. This includes detailed disclosure of specific financial transactions, disbursement records, and the identities of contractors and individuals who received the money.
The Auditor-General’s report highlighted several concerning expenditures that form the basis of SERAP’s lawsuit. Among the most striking was the reported spending of over £14.3 million on repairs to NNPCL’s London office in 2021. According to the audit, no evidence of completed work or supporting documentation was provided for this substantial expenditure.
Another flagged transaction involved an irregular payment exceeding USD $22.8 million to a contractor for lifting nine cargoes of crude oil. The payment reportedly far exceeded the amount actually due to NNPCL for the same period, raising questions about the transaction’s legitimacy.
Domestic irregularities were equally troubling. The audit identified over N3.4 billion paid for various services without proper documentation, N2.3 billion disbursed as car cash options to 100 staff members without the required approvals, and a failure to remit over N12.7 billion in operating surplus into the general reserve fund for December 2020.
In its court filings, SERAP argues that the alleged diversion of oil revenues has had far-reaching consequences for Nigeria’s development trajectory. The organization contends that such financial mismanagement has undermined economic growth, perpetuated widespread poverty, and deprived ordinary Nigerians of opportunities that should flow from the country’s considerable oil wealth.
“The alleged diversion of funds reflects a failure of NNPCL accountability more generally and is directly linked to the institution’s continuing failure to uphold the principles of transparency and accountability,” SERAP stated in the lawsuit.
The organization further asserted that judicial intervention is necessary to address what it characterized as “entrenched impunity” within the oil sector. SERAP believes that a favorable court ruling would not only strike a blow against those responsible for the missing funds but also ensure that diverted money is recovered for the benefit of all Nigerians.
This legal challenge comes at a critical time for Nigeria’s petroleum industry. NNPCL, which transitioned from a state corporation to a limited liability company in 2022, has faced persistent scrutiny over its financial practices and operational transparency.
The outcome of this case could set important precedents for accountability in Nigeria’s oil sector, which remains the backbone of the national economy despite years of calls for diversification. With oil revenues crucial to government finances and national development, questions about how these funds are managed have significant implications for millions of Nigerians.
As the case proceeds through the Federal High Court, attention will focus on whether NNPCL can provide satisfactory explanations for the transactions flagged in the audit report and whether the judiciary will compel greater transparency from one of the country’s most powerful institutions.
The matter is expected to be heard in the coming weeks, with SERAP maintaining that accountability for public resources is not just a legal requirement but a fundamental prerequisite for Nigeria’s economic and social development.
WHAT YOU SHOULD KNOW
SERAP has sued Nigeria’s state oil company, NNPCL, over approximately N22.3 billion and millions in foreign currency that auditors say cannot be accounted for. The civil society group wants the court to force NNPCL to explain where the money went, citing suspicious transactions, including £14.3 million for undocumented London office repairs and USD$22.8 million in irregular payments to contractors.
SERAP argues this missing oil revenue has deepened Nigeria’s poverty and economic struggles, and that only judicial intervention can break the cycle of impunity in the oil sector. The case tests whether Nigeria’s courts can enforce transparency in an industry that remains vital to the nation’s finances but is plagued by accountability failures.
