Anti-graft group seeks N500,000 fine against firm over alleged FOI Act breach

Anti-graft group seeks N500,000 fine against firm

An anti-corruption civil society organisation has urged the Federal High Court in Abuja to impose a N500,000 fine on Lee Engineering and Construction Company Limited for allegedly violating the Freedom of Information (FOI) Act by refusing to disclose records relating to publicly funded oil and gas projects.

The request is contained in judicial review proceedings for which Justice Binta Nyako granted leave on June 25, 2026, following an ex parte motion filed by the Incorporated Trustees of the Conference of Civil Society for Transparency and Accountability (CCSTA).

The suit arose after Lee Engineering allegedly failed to respond to a Freedom of Information request dated April 14, 2026, seeking information on several projects executed for the Nigerian National Petroleum Company (NNPC) Limited and its subsidiaries.

According to court documents, the civil society organisation is demanding records relating to refinery rehabilitation contracts, the Utorogu Gas Plant expansion, the Assa North-Ohaji South (ANOH) gas project, emergency pipeline repairs, environmental impact assessments, host community development expenditures, procurement approvals and compliance with local content obligations.

By granting leave, the court held that the application raised issues deserving judicial determination, paving the way for substantive proceedings on whether the company breached its obligations under the FOI Act.

The litigation comes amid growing concerns over transparency and accountability in Nigeria’s oil and gas industry, where opaque procurement practices, contract inflation and weak oversight have continued to attract criticism from stakeholders.

Counsel to the applicant, Joseph Chukwuemeka, argued that poor procurement practices in the sector have profound consequences for the nation’s economy.

He said strategic projects that are poorly managed, delayed or inflated often compel the government to borrow additional funds to finance cost overruns and abandoned projects, thereby worsening Nigeria’s debt burden and limiting resources available for critical sectors such as education, healthcare and social protection.

According to him, procurement inefficiencies also fuel inflation by undermining domestic energy production, increasing dependence on imported petroleum products and exposing the economy to foreign exchange volatility.

He added that higher energy costs inevitably cascade through the economy, driving up transportation costs, food prices and the overall cost of living for millions of Nigerians.

Speaking on the development, CCSTA Chairman, Comrade Japhet Onlede, said transparency in oil and gas procurement was indispensable to economic stability, debt sustainability, energy security and public confidence.

“Nigeria cannot continue to accumulate debt while citizens remain in darkness, refineries remain dysfunctional and critical gas infrastructure projects remain shrouded in secrecy.

Transparency in oil and gas procurement is not optional; it is indispensable to economic stability, debt sustainability, energy security and public trust,” he said.
Among the reliefs sought before the court, the organisation is asking for an order convicting Lee Engineering for the alleged breach of the FOI Act and imposing a N500,000 fine, payable into the Federal Government’s Treasury Single Account.

In the alternative, it is seeking an order compelling the Attorney General of the Federation to prosecute the company for the alleged violations of the Act.
CCSTA argued that private entities performing public functions or utilising public funds are bound by the provisions of the FOI Act and cannot lawfully refuse to disclose information of public interest.

The organisation maintained that a successful prosecution would send a strong message that contractors handling public resources must comply with transparency laws or face legal and reputational consequences.

Onlede said the group would continue to deploy strategic litigation to ensure that public resources are managed openly, responsibly and in the best interest of Nigerians.

“Accountability is not an option in a democracy; it is a constitutional imperative,” he added.

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