A Nigerian rights group has launched a lawsuit against the state oil firm over the “unjustifiable” spending of 5.9bn naira (£3m) on its corporate rebranding.
The Socio-Economic Rights and Accountability Project (SERAP) is demanding that the Nigerian National Petroleum Company Limited (NNPCL) account for the multi-billion naira transformation from its predecessor, the NNPC.
The legal challenge follows a critical review by a Senate committee, which labelled the expenditure “excessive” and demanded further scrutiny.
Dual charges
The controversy stems from the 2021 restructuring of Nigeria’s national oil corporation. Under the country’s Petroleum Industry Act, the state-run giant was mandated to transition into a commercially oriented, limited liability company.
However, SERAP alleges that the funds for this transition were effectively deducted twice from state revenue streams.
According to the lawsuit filed at the Federal High Court in Abuja, 2.9 billion naira was taken from petroleum product proceeds to cover incorporation expenses. Simultaneously, a separate 2.9 billion naira charge was allegedly levied against crude oil revenues by the National Petroleum Investment Management Services (NAPIMS) for the same purpose.
Demand for transparency
In the suit, SERAP is seeking a court order to compel NNPCL to publish a comprehensive financial reconciliation statement. This would include the identities of all contractors involved, how the money was utilised, and the names of the government officials who authorised the release of the funds.
Lawyers acting for the advocacy group argued that the failure to account for the spending represented a “grave violation of the public trust” and violated transparency clauses within the Nigerian constitution.
“Nigerians have the right to know who approved the expenditure, who received the funds, and whether due process was strictly followed,” the group said in its court filings.
The transformation of the company was intended to usher in an era of commercially driven transparency for Africa’s largest oil producer, which has historically been dogged by allegations of corruption and mismanagement.
No date has yet been fixed for the high court hearing.
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