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The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Nigerian National Petroleum Company Limited (NNPCL), seeking a court order compelling the company to account for N211 trillion recorded in its 2023 audited financial statements as ‘sundry receivables and accrued expenses.’
The suit, marked FHC/ABJ/CS/1426/2027, was filed at the Federal High Court in Abuja, where SERAP is asking the court to direct the NNPCL to disclose documents and provide a comprehensive explanation of the transactions contained in its audited accounts.
According to SERAP, NNPCL’s 2023 financial statements recorded N107.6 trillion under sundry receivables and N103.4 trillion as accrued expenses, without sufficient details to enable public scrutiny or independent verification.
The organisation is seeking an order of mandamus compelling the NNPCL to provide a detailed reconciliation of the receivables, including the identities of debtors, amounts owed, the legal basis for the debts and the status of efforts to recover the funds.
SERAP also wants the court to order the oil company to disclose a full breakdown of the accrued expenses, identifying the creditors and beneficiaries, explaining the nature and legal basis of the liabilities and providing documents supporting the legitimacy of the transactions.
Additionally, the group is requesting access to all records relied upon in preparing and approving the N211 trillion entries in the company’s 2023 audited financial statements.
In the suit, SERAP argued that there is an overriding public interest in the disclosure of the information, maintaining that NNPCL has a legal obligation to explain the entries and demonstrate that they are lawful, accurate and supported by credible documentation.
The organisation contended that the Freedom of Information Act and the African Charter on Human and Peoples’ Rights guarantee Nigerians the right to access information held by public institutions, including NNPCL, to promote transparency and accountability in the management of public resources.
SERAP further argued that public disclosure would strengthen fiscal accountability, prevent corruption and enable effective public oversight of the management of Nigeria’s oil wealth.
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According to the organisation, Nigerians have a right to know who owes the N107.6 trillion recorded as receivables, who is entitled to the N103.4 trillion classified as accrued expenses, and whether the transactions comply with applicable laws and public accountability standards.
The suit, filed by SERAP’s legal team comprising Oluwakemi Agunbiade, Kehinde Oyewumi, Andrew Nwankwo and Maryam Mumuni, described “Sundry Receivables” as amounts NNPCL claims are owed by individuals, companies or government agencies but have not yet been received.
It explained that “Accrued Expenses” represent liabilities incurred for goods, services or other obligations that remain unpaid.
SERAP argued that while the two entries account for more than N211 trillion in the company’s audited accounts, the financial statements do not adequately disclose who owes the money, who is to be paid, or the legal basis for the transactions.
The organisation maintained that NNPCL remains subject to the Freedom of Information Act because it is wholly owned by the Federal Government and manages Nigeria’s petroleum resources on behalf of the federation.
It also argued that the Petroleum Industry Act does not exempt the company from transparency and accountability obligations, stressing that revenues derived from the nation’s petroleum resources remain public funds
SERAP alleged that NNPCL failed to respond to its Freedom of Information request within the period prescribed by law, describing the silence as a deemed refusal that justified judicial intervention.
The organisation maintained that greater transparency in the management of Nigeria’s oil revenues is essential for combating corruption, strengthening public confidence and ensuring that the country’s natural resources benefit all Nigerians.
No date has been fixed for the hearing of the case.
