SERAP Takes NNPCL to Court: Alleges Failure to Disclose Nigeria’s Daily Oil Output and Revenues

Infostride News, a prominent source of information, has recently reported on a significant legal development involving the Socio-Economic Rights and Accountability Project (SERAP) and the Nigerian National Petroleum Company Limited (NNPCL).

This legal action stems from the alleged failure of the NNPCL to disclose crucial details about Nigeria’s daily oil production, exportation, and the total revenues generated from oil since the removal of the subsidy on petrol in May 2023.

SERAP has taken the initiative to address this perceived lack of transparency by filing a lawsuit against the NNPCL. The lawsuit, officially designated as FHC/ABJ/CS/1719/2023, was submitted on Friday at the Federal High Court in Abuja. The advocacy group had initially urged Mele Kyari, the chairman of the NNPCL, to reveal the extent to which the revenues generated from oil have been remitted to the public treasury since the subsidy removal.

In a letter dated December 9, 2023, signed by SERAP Deputy Director Kolawole Oluwadare, the organization highlighted the legitimate public interest in obtaining this information. The letter explicitly requested the NNPCL to respond within seven days and provide an audit regarding the daily oil production and the revenue generated from oil proceeds since the subsidy removal.

However, with the NNPCL failing to respond to SERAP’s letter within the stipulated time frame, SERAP decided to escalate the matter by filing a lawsuit, emphasizing that such action is in the public interest. The legal suit, presented on behalf of SERAP by its lawyers Kolawole Oluwadare and Andrew Nwankwo, argues for the necessity of disclosing critical information about Nigeria’s oil production and revenue generation.

The lawsuit asserts that Nigeria’s daily oil production, exportation, and the revenues generated have been shrouded in secrecy for far too long. It contends that transparency in disclosing the amounts of barrels of oil produced and exported daily, along with the revenues generated and remitted to the public treasury, is essential. This disclosure, according to SERAP, would ensure that the NNPCL operates within the bounds of the law.

Furthermore, SERAP contends that transparency and accountability in managing Nigeria’s oil resources would improve the citizens’ enjoyment of their right to natural wealth and resources. The organization believes that the public interest in publishing the sought information outweighs any considerations to withhold it.

The lawsuit underscores the impact of corruption in the oil sector on ordinary Nigerians, who have derived minimal benefits from the country’s enormous oil wealth. SERAP asserts that combating corruption in the oil sector is crucial for alleviating poverty, improving access to basic public goods and services, and enhancing the government’s ability to meet its human rights and anti-corruption obligations.

Citing constitutional provisions, SERAP argues that Section 15(5) of the Nigerian Constitution 1999 (as amended) mandates public institutions and officials to abolish all corrupt practices and abuse of power. Section 16(2) further emphasizes that the material resources of the nation should be harnessed and distributed to serve the common good.

The lawsuit highlights Nigeria’s legal commitments under the UN Convention against Corruption and the African Union Convention on Preventing and Combating Corruption, aiming to ensure transparency and accountability in managing public resources. SERAP asserts that the NNPCL has failed to uphold these commitments by not disclosing the amounts of barrels of oil the country produces and exports, as well as the details of revenues generated and remitted to the public treasury, as required by Nigerian laws.

In a background context, the letter dated December 9, 2023, and signed by SERAP Deputy Director Kolawole Oluwadare emphasized the legitimate public interest in disclosing daily production and revenue. Additionally, former Governor of the Central Bank of Nigeria (CBN), Sanusi Lamido Sanusi, had previously raised concerns about the NNPCL’s failure to remit sufficient foreign exchange into the treasury despite the removal of the fuel subsidy, questioning the whereabouts of the money.

SERAP contends that opacity in the disclosure of daily oil production and revenue would have negative impacts on the fundamental interests of citizens and the public interest. The organization argues that transparency is crucial to ensuring that revenues are not diverted into private pockets and to increase public trust that the money will be used to benefit Nigerians.

As this legal battle unfolds, it brings to the forefront the larger issues of transparency, accountability, and the equitable distribution of Nigeria’s oil wealth, reflecting the ongoing struggle to address corruption and promote the common good. Infostride News will continue to provide updates on this critical legal matter that holds implications for the nation’s economic and social well-being.