In a landmark legal move, the Socio-Economic Rights and Accountability Project (SERAP) has dragged the Nigerian National Petroleum Company Limited (NNPCL) to the Federal High Court in Lagos over the alleged failure to account for a staggering N825 billion and $2.5 billion earmarked for the rehabilitation of Nigeria’s moribund refineries.SERAP Demands NNPCL Account for N500bn Shortfall
The lawsuit, filed on Friday, comes in the wake of damning revelations contained in the 2021 audited report by the Auditor-General of the Federation and recent public comments by business mogul Aliko Dangote, who declared that despite over $18 billion reportedly spent on refineries, they may never work again.
SERAP, through its legal team comprising Kolawole Oluwadare, Oluwakemi Oni, and Valentina Adegoke, is seeking an order of mandamus compelling NNPCL to explain the whereabouts of the funds, recover them, and remit the recovered sums to the Federation Account. The group is also urging the court to mandate the identification and prosecution of all individuals involved in the alleged mismanagement of the funds.
According to SERAP, the allegations suggest a deep-rooted culture of impunity within Nigeria’s oil sector, a vital industry that has long been tainted by opaque practices and financial mismanagement.
“The grim allegations by the Auditor-General and Mr. Dangote suggest a grave violation of public trust and a direct contravention of the Nigerian Constitution, national anti-corruption laws, and international obligations,” the rights group argued in the suit.
The NNPCL, formerly known as the Nigerian National Petroleum Corporation, has come under repeated scrutiny over the years for its handling of oil revenues, poor transparency, and failure to rehabilitate Nigeria’s refineries despite multiple financial interventions.
The Auditor-General’s 2021 report cited in SERAP’s lawsuit uncovered that despite hundreds of billions in naira and dollars reportedly spent on “refinery rehabilitation,” no tangible progress has been made. All four state-owned refineries — in Port Harcourt, Warri, and Kaduna — have remained dormant or operated at near-zero capacity for years.
The report also raised concerns about widespread procurement fraud and non-performance by contractors, pointing to a systemic lack of oversight and accountability.
SERAP noted that despite these revelations, no meaningful action has been taken to recover the funds or prosecute those responsible, leaving Nigerians to bear the brunt of decaying infrastructure and rising fuel prices.
Call for Justice and Transparency
In its court filings, SERAP emphasized that retrieving the missing funds is not just about accountability, but also a critical step toward improving Nigeria’s energy security and economic recovery.
“The vast majority of Nigerians have seen little benefit from the country’s oil wealth. These missing public funds meant for refinery rehabilitation have exacerbated poverty, worsened inflation, and forced the government into more deficit spending,” the suit states.
The advocacy group maintained that if allowed to stand, the NNPCL’s inaction would signal to corrupt actors that public resources can be squandered without consequences.
The lawsuit has stirred public interest, especially as Nigerians continue to experience fuel shortages and economic hardship, despite the country’s vast oil wealth. With refineries still non-functional, the country relies heavily on imports for refined petroleum products, costing the government billions in subsidies and foreign exchange.
Public opinion on social media platforms has largely backed SERAP’s initiative, with many calling for the immediate publication of all refinery contracts, audits, and a public inquiry into the NNPCL’s financial operations over the last decade.
This development comes at a time when President Bola Tinubu’s administration is under growing pressure to tackle corruption in the oil sector and deliver on its promise of economic reform and infrastructure revival.