The Socio-Economic Rights and Accountability Project (SERAP) has dragged the Nigerian National Petroleum Company Limited (NNPCL) to court over its alleged failure to account for approximately ₦5.9 billion reportedly spent on the incorporation, transition and rebranding of the Nigerian National Petroleum Corporation (NNPC) into NNPCL.

In the suit filed at the Federal High Court in Abuja, SERAP is seeking an order compelling the national oil company to explain how the funds were spent and disclose the officials and contractors involved in the process.

According to the organisation, the NNPC allegedly spent ₦2.9 billion from petroleum product proceeds on incorporation expenses, while the National Petroleum Investment Management Services (NAPIMS) reportedly charged another ₦2.9 billion to crude oil revenue for the same purpose, bringing the total expenditure to about ₦5.9 billion.

SERAP said it is seeking “an order of mandamus to direct and compel the NNPCL to account for about ₦5.9 billion allegedly spent on the rebranding of the NNPC to the NNPCL.”

The group also asked the court to compel the company to provide “a comprehensive reconciliation statement detailing the specific financial transactions relating to the ₦5.9 billion expenditure, including the identities of the contractors involved and how the funds were utilised.”

It further requested the disclosure of the names and official positions of government officials who authorised and approved the expenditure, as well as clarification on whether the spending complied with procurement laws and due-process requirements.

The suit, marked FHC/ABJ/CS/1248/2026, was disclosed in a statement issued on Sunday by SERAP Deputy Director, Kolawole Oluwadare.

The legal action was filed on behalf of SERAP by lawyers Oluwakemi Agunbiade, Kehinde Oyewumi and Andrew Nwankwo.

According to SERAP, the Senate Committee on Public Accounts had reportedly raised concerns over the expenditure categorised as incorporation and transition costs during the transformation process.

“The Committee described the spending of the ₦5.9 billion as excessive, unjustifiable and deserving of further explanation, investigation and legislative scrutiny in the public interest,” the organisation stated.

SERAP argued that the public has a right to know how the funds were spent, insisting that transparency and accountability must guide the operations of the state-owned oil company.

“The NNPCL has a legal responsibility to explain whether the ₦5.9 billion expenditure represents value for money, constitutes lawful spending of public funds, and complies with applicable due-process requirements,” SERAP said.

“There ought to be full transparency and accountability regarding the reported ₦5.9 billion spent on rebranding NNPC to NNPCL. Nigerians have the right to know who approved the expenditure, who received the funds, the nature of the services rendered, and whether due process and procurement requirements were strictly followed.”

The organisation added that disclosing the identities of the officials involved and the approval process would enable Nigerians assess whether the expenditure was properly authorised and in line with extant laws.

SERAP further argued that the alleged failure to account for the funds reflects broader accountability concerns within the NNPCL.

“The failure to account for the spending of the ₦5.9 billion on the rebranding from NNPC to NNPCL reflects a broader failure of accountability and is directly linked to the institution’s continuing inability to uphold transparency and accountability principles,” it stated.

The organisation noted that the transition from NNPC to NNPCL was carried out under the Petroleum Industry Act (PIA) 2021, which transformed the national oil company into a commercially driven limited liability company wholly owned by the Federal Government.

SERAP also cited constitutional and international anti-corruption provisions, including Sections 13 and 15(5) of the Nigerian Constitution, Articles 5 and 9 of the United Nations Convention against Corruption, and Article 21 of the African Charter on Human and Peoples’ Rights, in support of its case.

No hearing date has been fixed for the suit.