SERAP Drags NNPCL to Court Over ₦211 Trillion Sundry Receivables and Accrued Expenses

The Socio-Economic Rights and Accountability Project (SERAP) has asked the Federal High Court in Abuja to order the Nigerian National Petroleum Company Limited (NNPCL) to explain and account for over ₦211 trillion recorded under “Sundry Receivables” and “Accrued Expenses” in its 2023 audited financial statements.

SERAP, in the Freedom of Information suit marked FHC/ABJ/CS/1426/2027, asked the court to issue an order of mandamus directing the NNPCL to disclose all documents and information relating to the disputed financial entries, which it argued lack sufficient explanation to allow public scrutiny.

The group claimed that the NNPCL’s 2023 audited financial statements recorded N107.6 trillion as “Sundry Receivables” and “another N103.4 trillion” as “Accrued Expenses,” bringing the total to over N211 trillion.

It also sought a detailed reconciliation of N107.6 trillion in receivables, including the identities of the debtors, the amounts owed, the legal basis for the debts and the status of recovery efforts.

SERAP also asked the court to compel the NNPCL to provide a comprehensive breakdown of the N103.4 trillion accrued expenses, identifying the creditors and beneficiaries, explaining the nature and legal basis of the liabilities, and producing documents supporting the legitimacy of the transactions.

The organisation further seeks a direction from the court requiring the national oil company to disclose all records relied upon in preparing and approving the financial entries contained in its audited accounts.

The plaintiff, in an affidavit filed alongside the suit, maintained that Nigerians have a constitutional and statutory right to scrutinise the management of public oil revenues.

The organisation further stated that the Freedom of Information Act and the African Charter on Human and Peoples’ Rights guarantee Peoples’o information held by public institutions, including the NNPCL, particularly where such information relates to the management of public resources.

SERAP argued that public disclosure of the documents is necessary to promote transparency, strengthen fiscal accountability, prevent corruption and enable Nigerians to determine whether the transactions were lawful and properly documented.

The organisation maintained that although the NNPCL now operates as a limited liability company under the Petroleum Industry Act, it remains wholly owned by the Federal Government and continues to manage Nigeria’s petroleum resourNigeria’shalf of the federation, making it subject to the provisions of the Freedom of Information Act.

The plaintiff also alleged that the NNPCL failed to respond to its earlier Freedom of Information request within the statutory period, a development it said amounted to a deemed refusal under the law, thereby necessitating judicial intervention.

SERAP further argued that secrecy surrounding the management of oil revenues undermines public confidence, weakens accountability and is inconsistent with the Nigerian Constitution, the Fiscal Responsibility Act, the Financial Regulations, the UN Convention against Corruption and other international human rights obligations binding on Nigeria. No hearing date has been fixed for the case.

… SERAP Drags NNPCL to Court Over ₦211 Trillion Sundry Receivables and Accrued Expenses … Naijaonpoint.