SERAP sues NNPC over N211tn unexplained sundry receivables in Nigeria

• SERAP sues NNPC over N211 trillion unexplained sundry receivables
• NNPC ordered to account for N211 trillion recorded as 'Sundry Receivables' and 'Accrued Expenses'
• Court processes read that 'Sundry Receivables' are amounts owed to NNPC, while 'Accrued Expenses' are amounts owed by NNPC
• SERAP argues that NNPC's failure to provide adequate details of transactions is a violation of Nigerians' right to access information

The NNPCL has a legal duty to explain and account for the N211tn and demonstrate that the entries are accurate, lawful and supported by credible documentation.

The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Nigerian National Petroleum Company Limited (NNPC) at the Federal High Court in Abuja. The suit, marked FHC/ABJ/CS/1427/2026, was filed last week and seeks to compel NNPC to account for over N211 trillion recorded as 'Sundry Receivables' and 'Accrued Expenses' in its 2023 audited financial statements. SERAP is asking the court to order NNPC to provide a detailed explanation of the transactions, including the identities of debtors and creditors, the amounts owed or due, and the legal basis for the receivables and liabilities.

The organisation is also seeking an order directing NNPC to disclose all documents and information relating to the transactions recorded in its 2023 audited financial statements. This includes providing a breakdown of the N107.6 trillion recorded as 'Sundry Receivables' and the N103.4 trillion recorded as 'Accrued Expenses'.

SERAP argued that there is an overriding public interest in the disclosure of this information, citing the Freedom of Information Act and the African Charter on Human and Peoples' Rights.

The lawsuit filed by SERAP is based on the organisation's contention that NNPC has a legal duty to explain and account for the N211 trillion recorded as 'Sundry Receivables' and 'Accrued Expenses'. The group argued that this information is necessary to promote transparency, prevent corruption, strengthen fiscal accountability, and ensure effective public oversight of NNPC's operations. SERAP also cited the Freedom of Information Act and the African Charter on Human and Peoples' Rights, which guarantee the public's right to access information held by public institutions.

The court processes read that 'Sundry Receivables' are amounts of money that NNPC says are owed to it by individuals, companies or government entities but which it has not yet received. 'Accrued Expenses' are amounts that NNPC says it owes to others for goods, services or other obligations that have been incurred but not yet paid.

SERAP argued that NNPC's failure to provide adequate details of the transactions or sufficient information to enable Nigerians to scrutinise how the funds were recorded is a violation of their right to access information.

The lawsuit filed by SERAP has significant implications for the transparency and accountability of state-owned oil firms in Nigeria. If successful, the case could set a precedent for mandamus orders compelling these companies to disclose unexplained accounting entries. This would promote financial transparency, prevent corruption, and strengthen fiscal accountability.

Nigerians have the right to know who owes the N107.6 trillion, who is entitled to the N103.4 trillion in accrued expenses, the legal basis for the transactions, and whether the entries comply with applicable laws and public accountability standards. The disclosure of this information would enable citizens to scrutinise the management of public resources and ensure that NNPC's operations are transparent and accountable.

The case also highlights the importance of the Freedom of Information Act and the African Charter on Human and Peoples' Rights in promoting transparency and accountability in public institutions.

Lawyers should watch for potential precedent on mandamus orders compelling state-owned oil firms to disclose unexplained accounting entries, which may impact their clients' compliance obligations.

Source: Original reporting via Socio-Economic Rights and Accountability Project