The legal action follows revelations in the 2022 audited report by the Auditor-General of the Federation, published on 9 September 2025, which documented the alleged financial discrepancies.
The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Nigerian National Petroleum Company (NNPC) Limited, accusing the company of failing to account for allegedly missing or diverted funds totaling ₦22.3 billion, US$49.7 million, £14.3 million, and €5.2 million.
The legal action follows revelations in the 2022 audited report by the Auditor-General of the Federation, published on 9 September 2025, which documented the alleged financial discrepancies.
Filed last Friday at the Federal High Court in Abuja under suit number FHC/ABJ/CS/195/2026, SERAP is seeking "an order of mandamus to direct and compel the NNPCL to account for the alleged missing or diverted N22.3 billion, USD$49.7 million, £14.3 million, and €5.2 million oil money."
SERAP is asking the court to "direct and compel the NNPCL to disclose the specific financial transactions carried out in respect of the alleged missing or diverted N22.3 billion, USD$49.7 million, £14.3 million and €5.2 million oil money, including details of disbursement, the contractors, and other individuals who collected the money."
In the suit, SERAP argues that the “diverted or misappropriated 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."
According to SERAP, "granting the reliefs sought would strike a blow against the impunity of those responsible for the missing or diverted oil money, and ensure that the money is returned for the sake of NNPCL's victims—Nigerians."
SERAP said, "The Auditor-General has for many years documented reports of disappearance of oil money from the NNPCL. Nigerians continue to bear the brunt of these missing oil money meant to provide essential public services for Nigerians."
The organisation accused the NNPCL of mismanaging and diverting billions of naira and foreign currency from the country’s oil revenues, citing findings from the 2022 Auditor-General’s report.
SERAP claims the alleged misappropriation has worsened Nigeria’s economic challenges and deprived citizens of benefits from the nation’s oil wealth.
The Auditor-General’s report highlighted numerous irregularities, including payments for abandoned contracts, unverified expenditures, and failure to deduct statutory taxes.
Examples include over ₦292 million paid for an unfinished emergency facility in Abuja, more than £14 million for unaccounted repairs to NNPCL’s London office, and USD$22 million paid for crude oil transactions with no adequate explanation.
Other flagged payments include ₦2.3 billion as car cash options to staff without approvals, failure to deduct over ₦247 million and USD$529,000 in taxes from contractors, and billions of naira spent on services, vessel hire, consultancy, and infrastructure projects with missing or inadequate documentation.
SERAP argues that these irregularities represent a serious breach of public trust, national anti-corruption laws, and Nigeria’s constitutional and international obligations, and is seeking legal redress to hold NNPCL accountable for the alleged diversion of funds.
The Auditor-General’s 2022 report also flagged multiple irregular payments and unexecuted contracts by the NNPCL. In 2019, NNPCL awarded an $8.2 million contract for the emergency installation of custody transfer meters on crude oil pipelines, but there is concern the work was not carried out.
Other questionable expenditures include over €5.1 million for the operation of the Atlas Cove Jetty Facility, $1 million paid as legacy debt for chartered coastal vessels, and nearly $1.93 million for time charter hire of petroleum transport vessels, all with inadequate documentation or justification.
Payments to consultants also raised concerns, including $156,000 for advisory services on refinery rehabilitation and ₦82.6 million for geotechnical studies for a proposed Independent Power Plant, with no records of actual work performed.
Further irregularities included ₦246 million for steel pipes for the Warri Refinery, which were never delivered, failure to deduct over ₦46 million in taxes from consultancy contracts, and an irregular ₦200 million payment for tax renegotiation settlements.
These expenditures suggest potential diversion of public funds and prompted calls for recovery and accountability.
"The NNPCL 'failed to remit over N12 billion [N12,721,000,000.00] into the general reserve fund its operating surplus for December 2020.' The Auditor-General fears that 'the money may have been diverted,’” it said.
"The NNPCL 'irregularly paid N152 million [N152,000,000.00] to a company to execute a procurement contract requested from the Office of the Inspector-General of Police', but 'without any documents.'
"The NNPCL 'irregularly paid N25,000,000.00 as additional consultancy fee on a contract for accounting support.' The Auditor-General fears that 'the money may have been diverted.' He wants 'the money recovered and remitted to the treasury.'
"The NNPCL 'paid over USD$12 million [$12,444,313.22] to a contractor to buy and instal new diesel generation set at Mosimi Depot.' But there is no evidence that the project has been fully executed 'despite the fact that the contract specified that the project awarded in 2020 should be completed within 15 months.'
"The NNPCL 'irregularly paid over N145 million [N145,933,833.00] for a contract for the operation and maintenance of Electro-Mechanical Facilities in the NNPC Towers. The 'contract was automatically renewed on yearly basis without creating room for a fresh contract where other consultants would be given an opportunity of being considered'. The Auditor-General wants the money accounted for.
"The NNPCL 'paid 13 contractors over N1 billion [N1,212,192,409.97] for various works between 2020 and 2021', but 'there is no evidence of any work done by the contractors as there were no supporting documents.'"
No date has been fixed for the hearing of the suit.