NNPCL Faces Court Action Over N5.9bn Rebranding Costs

The Socio-Economic Rights and Accountability Project, SERAP, has taken the Nigerian National Petroleum Company Limited, NNPCL, to court over its alleged failure to provide a detailed account of the N5.9 billion spent on the transition and rebranding of the Nigerian National Petroleum Corporation into NNPCL. According to SERAP, the lawsuit, which was filed at the Federal High Court in Abuja, is aimed at compelling NNPCL to provide a comprehensive breakdown of how the funds were utilized for the rebranding process. The organisation is seeking an order of mandamus to direct NNPCL to furnish the court with the specifics of the financial transactions related to the N5.9 billion expenditure, including the identities of the contractors involved and how the funds were spent. SERAP is also asking the court to order NNPCL to disclose the names and positions of government officials who authorised the release and expenditure of the N5.9 billion. The group argued that the public has a right to know how the funds were spent and whether due process was followed. 'There is a legitimate public interest in the disclosure of the details sought,' SERAP stated in the suit. The organisation maintained that transparency and accountability demand full disclosure of the expenditure. '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,' SERAP argued. The lawsuit was filed on behalf of SERAP by its lawyers, Oluwakemi Agunbiade, Kehinde Oyewumi, and Andrew Nwankwo. The lawyers contended that the alleged expenditure raises concerns about compliance with constitutional and anti-corruption obligations. 'The alleged spending of the N5.9 billion suggests a grave violation of the public trust and the provisions of the Nigerian Constitution 1999 (as amended), national anti-corruption laws, and the country’s international anti-corruption obligations,' the suit stated. SERAP also cited concerns reportedly raised by the Senate Committee on Public Accounts regarding the expenditure. The committee had described the expenditure as 'excessive, unjustifiable, and deserving of further explanation, investigation, and legislative scrutiny in the public interest.' The transition of NNPC into NNPCL followed the enactment of the Petroleum Industry Act 2021, which required the corporation to become a commercially oriented limited liability company wholly owned by the Federal Government. SERAP argued that sections of the Constitution impose obligations on public institutions to promote accountability, prevent corruption, and ensure that national resources are managed for the common good. No date has been fixed for the hearing of the lawsuit.