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NNPC Faces Lawsuit For Alleged Failure To Account for ₦164 Billion In Oil Fund

Published

7 months ago

Apr 28, 2024.

NNPC Faces Lawsuit For Alleged Failure To Account for ₦164 Billion In Oil Fund
They seek orders to compel NNPC to explain, recover, and remit missing funds, as well as hand over suspects for investigation.
Auditor-General’s reports document NNPC’s failure to remit funds, contributing to economic challenges.

EKO HOT BLOG reports that the Socio-Economic Rights and Accountability Project (SERAP) has sued the Nigerian National Petroleum Company (NNPC) Limited over its alleged failure to account for and explain the whereabouts of the alleged missing $2.04 billion and ₦164 billion oil revenues.

The suit followed the allegations documented in the recently published 2020 audited report by the Auditor General of the Federation that the NNPCL failed to remit the money into the Federation Account (FAAC), saying that the money may have been diverted.

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The suit, on behalf of SERAP by its lawyers, Kolawole Oluwadare and Kehinde Oyewumi, was filed last Friday at the Federal High Court in Abuja, numbered FHC/ABJ/CS/549/2024.

In the suit, SERAP is seeking an order of mandamus to direct and compel the NNPC to account for and explain the whereabouts of the missing USD$2.04 billion and N164 billion oil revenues, as documented in the report by the Auditor-General.

SERAP is also seeking an order of mandamus to compel the NNPC to hand over suspected perpetrators to the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC) for investigation and prosecution and an order of mandamus to compel the NNPC to ensure the full recovery and remittance of the missing USD$2.04 billion and N164 billion into the FAAC.

In the suit, SERAP argues that: “There is a legitimate public interest in providing the details sought. The NNPC has a legal responsibility to account for and explain the whereabouts of the disappeared money.

“The missing oil revenues have further damaged the already precarious economy in the country and contributed to high levels of deficit spending by the government.

“Without the full recovery and remittance of the missing USD$2.04 billion and N164 billion oil revenues, the dire economic situation may worsen and Nigerians will continue to be denied access to basic public goods and services.”

According to SERAP, the Auditor-General has for many years documented reports of disappearance of public funds from the NNPC. Nigerians continue to bear the brunt of these missing oil revenues.

The suit reads in part: “The alleged missing oil revenues reflect a failure of NNPCL accountability more generally and are directly linked to the institution’s continuing failure to uphold the principles of transparency and accountability.

“NNPCL reportedly failed and/or refused to remit N151,121,999,966. The NNPCL without any justification deducted the money from the oil royalties assessed for 2020 by the Department of Petroleum Resources (DPR) now the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

“The NNPCL has failed to account for the missing public funds. The Auditor-General wants the money recovered and remitted into the Federation Account.

“The NNPCL also failed to remit USD$19,774,488.15 collected as government revenue into the Federation Account. The Auditor-General wants the NNPCL to account for the money, recover and remit it into the Federation Account, and hand over those suspected to be involved to the ICPC and the EFCC.