The Socio-Economic Rights and Accountability Project (SERAP) has sued the Nigerian National Petroleum Company Limited (NNPCL), seeking judicial intervention to compel the state-owned energy company to account for about N5.9 billion allegedly spent on the transition and rebranding of the former Nigerian National Petroleum Corporation (NNPC) into NNPCL.
The suit, filed at the Federal High Court in Abuja, marks an escalation of concerns surrounding the cost of the corporate transformation carried out under the provisions of the Petroleum Industry Act (PIA) 2021, which converted NNPC into a commercially driven limited liability company wholly owned by the Federal Government.
SERAP disclosed the action in a statement, noting that it is seeking a court order compelling NNPCL to provide a detailed breakdown of the expenditure, identify contractors and beneficiaries involved in the transactions, and disclose how the funds were utilised.
The organisation is also asking the court to direct NNPCL to reveal the identities and official positions of government officials who authorised the expenditure and clarify whether the spending complied with procurement regulations and due process requirements.
According to SERAP, the public has a legitimate interest in understanding whether the expenditure represented value for money and complied with legal and governance standards expected of a company managing public assets.
The legal action comes one month after the group urged President Bola Tinubu to order an investigation into the reported expenditure.
At the centre of the controversy are findings linked to the Senate Committee on Public Accounts, which reportedly questioned the magnitude of the spending.
According to details cited by SERAP, about N2.9 billion was allegedly paid from petroleum product proceeds for incorporation-related expenses, while another N2.9 billion was reportedly charged to crude oil revenue through the National Petroleum Investment Management Services (NAPIMS), bringing the total to roughly N5.9 billion.
Lawmakers had reportedly described the expenditure as excessive and called for further scrutiny.
The lawsuit adds to growing pressure on NNPCL over transparency and financial accountability. In recent months, the company has faced heightened legislative scrutiny following questions raised by the Senate Committee on Public Accounts over alleged discrepancies running into trillions of naira in its audited financial statements.
In March, the committee summoned members of NNPCL’s former management team, including former Group Chief Executive Officer, Mele Kyari, over issues linked to the company’s accounts between 2017 and 2023. Lawmakers said they identified substantial accrued expenses and other entries requiring further explanation.
For investors and policy analysts, the case highlights the growing demand for stronger governance standards at NNPCL as it seeks to operate as a commercially oriented national oil company. The outcome could also test the extent to which public-interest litigation can be used to enforce transparency obligations on state-owned enterprises undergoing corporate transformation.
The suit is yet to be assigned a hearing date.