SERAP sues NNPC over alleged N5.9bn rebranding expenditure

The Socio-Economic Rights and Accountability Project has filed a lawsuit against the Nigerian National Petroleum Company Limited over its alleged failure to account for approximately N5.9bn reportedly spent on the incorporation, transition and rebranding of the Nigerian National Petroleum Corporation into NNPCL.

The suit, marked FHC/ABJ/CS/1248/2026, was filed last week before the Federal High Court in Abuja.

According to SERAP, the NNPC reportedly paid N2.9bn for incorporation expenses from petroleum product proceeds, while the National Petroleum Investment Management Services also charged N2.9bn to crude oil revenue for the same purpose, bringing the total expenditure on the transition and rebranding process to about N5.9bn.

In the suit, SERAP is seeking an order of mandamus compelling NNPCL to account for the expenditure and provide details of how the funds were spent.

Specifically, the organisation is asking the court to direct the company to provide “a comprehensive reconciliation statement detailing the specific financial transactions relating to the N5.9bn expenditure, including the identities of the contractors involved, and how the funds were utilised for the rebranding of NNPC to NNPCL.”

SERAP is also seeking an order compelling NNPCL to disclose “the names and official positions of the government officials who authorised and approved the release and expenditure of the N5.9bn reportedly spent on the rebranding of NNPC to NNPCL, and to clarify whether the expenditure complied with applicable procurement laws and due-process requirements.”

The organisation argued that the public has a right to know how the funds were spent and whether due process was followed.

“There is a legitimate public interest in the disclosure of the details sought.

“The NNPCL has a legal responsibility to explain whether the N5.9bn expenditure represents value for money, constitutes lawful spending of public funds, and complies with applicable due process requirements,” SERAP stated in the suit.

According to the organisation, transparency and accountability demand full disclosure of the expenditure.

“There ought to be full transparency and accountability regarding the reported N5.9bn spent on rebranding NNPC to NNPCL.

“Nigerians have the right to know who approved the expenditure, who received the funds, the nature of the services rendered, and whether due process and procurement requirements were strictly followed,” SERAP argued.

The group further contended that disclosure of the identities of officials involved in approving the expenditure would enable the public to determine whether the spending was properly authorised and represented value for money.

“Given the size of the reported expenditure and the importance of transparency in the management of public resources within the petroleum sector, there is an urgent need for a prompt, thorough, and transparent disclosure of the details surrounding the spending of the funds,” it said.

The suit was filed on behalf of SERAP by its lawyers, Oluwakemi Agunbiade, Kehinde Oyewumi and Andrew Nwankwo.

In the court documents, the lawyers argued that the alleged expenditure raises concerns about compliance with constitutional and anti-corruption obligations.

“The alleged spending of the N5.9bn suggests a grave violation of the public trust and the provisions of the Nigerian Constitution 1999 (as amended), national anti-corruption laws, and the country’s international anti-corruption obligations,” the suit stated.

SERAP also maintained that NNPCL’s alleged failure to account for the expenditure reflects broader accountability concerns within the organisation.

“The failure to account for the spending of the N5.9bn on rebranding from NNPC to NNPCL reflects a failure of NNPCL accountability more generally and is directly linked to the institution’s continuing failure to uphold transparency and accountability principles,” it said.

The organisation further argued that the refusal or failure to provide details of the expenditure undermines citizens’ right of access to information concerning the management of public resources.

SERAP cited concerns reportedly raised by the Senate Committee on Public Accounts regarding the expenditure.

According to the suit, the committee “raised serious concerns regarding the expenditure of the N5.9bn described as incorporation and transition expenses allegedly incurred during the process of transforming the NNPC into the NNPCL.”

The committee reportedly described the expenditure as “excessive, unjustifiable, and deserving of further explanation, investigation, and legislative scrutiny in the public interest.”

The organisation noted that the transition of NNPC into NNPCL followed the enactment of the Petroleum Industry Act 2021, which required the corporation to become a commercially oriented limited liability company wholly owned by the Federal Government.

SERAP argued that Sections 13, 15(5) and 16 of the Constitution impose obligations on public institutions to promote accountability, prevent corruption and ensure that national resources are managed for the common good.

It also relied on Articles 5 and 9 of the United Nations Convention Against Corruption and Article 21 of the African Charter on Human and Peoples’ Rights, which provide for transparency in public finance management and the protection of peoples’ rights over natural resources.

No date has been fixed for the hearing.