THE Socio-Economic Rights and Accountability Project (SERAP) has dragged the Nigerian National Petroleum Company Limited (NNPCL) to court over its alleged failure to explain the whereabouts of over N825 billion and $2.5 billion meant for the rehabilitation of the country’s refineries.
The suit, filed last Friday, July 11, at the Federal High Court in Lagos and marked FHC/L/MISC/722/25, followed allegations contained in the 2021 audited report by the Auditor-General of the Federation, which was made public on November 27, 2024.
A statement by the organisation on Sunday, July 13, noted that the Auditor-General’s report raised red flags over multiple unaccounted oil revenues and unauthorised deductions linked to refinery repairs and crude sales between 2016 and 2021.
SERAP, in its suit, asked the court to compel the NNPCL to disclose the status of the missing funds, recover and remit them to the Federation Account, and hold accountable anyone found culpable.
The organisation said the case sought to strike a blow against impunity in the management of Nigeria’s oil wealth, adding that the continued failure to account for the funds violated both national laws and international obligations.
The group argued that the NNPCL’s failure to properly account for the billions meant for refineries rehabilitation reflected a breach of public trust and deepened poverty and economic instability in the country.
It also referenced recent remarks by Africa’s richest man, Aliko Dangote, who stated last week that NNPC-owned refineries might never work again, despite over $18 billion he allegedly said was spent on them.
The suit, read in part: “The Auditor-General fears the money may be missing. He wants the money recovered and remitted to the Federation Account. He also wants the NNPCL ‘to ensure that the amounts due for the Federation Account are not subjected to any deductions before remittance of net.
“The NNPCL also reportedly failed to account for over N343 billion [N343,642,598,726.51] ‘being proceeds from domestic crude sales. The money, meant for pipelines maintenance and management costs, was unilaterally deducted from the gross domestic crude sales,” the statement added.
It noted that the Auditor-General expressed concern that some of these funds might have been diverted, while others were either unjustifiably withheld or withdrawn from suspense accounts such as the CBN/NNPC sinking fund.
The SERAP further stressed that in several cases, the audit report showed that funds meant for the federation account were unilaterally deducted by the NNPCL before remittance.
The organisation added these actions undermined the country’s economic development and contributed to growing deficits, forcing the government into unsustainable borrowing while Nigerians continue to suffer the consequences of non-functional refineries.
This development comes amid growing uncertainty surrounding the fate of Nigeria’s state-owned refineries.
On Friday, July 11, The ICIR reported that the NNPCL was considering selling the Port Harcourt, Warri, and Kaduna refineries after over $18 billion was spent on their turnaround maintenance with little to show.
The NNPCL’s Group Chief Executive Officer, Bayo Ojulari, speaking in Vienna at an Organisation of Petroleum Exporting Countries (OPEC) seminar, confirmed that a full review of refinery strategy was underway and that selling the assets was on the table.
This was as Aliko Dangote, who hosted executives of Global CEO Africa earlier on Thursday, July 10, told guests that NNPCL’s refineries were unlikely to ever function again, describing the repair efforts on them as akin to modernising a 40-year-old car.
The ICIR reports that refineries have long been a drain on public resources. This organisation reported that between 2017 and 2021, the Port Harcourt Refining Company alone posted losses exceeding N343 billion, even as it recruited hundreds of new staff and maintained annual salaries amounting to billions.
Mustapha Usman is an investigative journalist with the International Centre for Investigative Reporting. You can easily reach him via: musman@icirnigeria.com. He tweets @UsmanMustapha_M