Business

Refinery repairs: SERAP sues NNPC for alleged misuse of N825bn, $2.5bn

Published

8 months ago

July 13, 2025

Refinery repairs: SERAP sues NNPC for alleged misuse of N825bn, $2.5bn

The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Nigerian National Petroleum Corporation Limited (NNPCL) over its failure to account for N825 billion and $2.5 billion allegedly allocated for refinery rehabilitation and other oil-related expenditures.

The legal action, marked FHC/L/MISC/722/25, was filed on Friday at the Federal High Court in Lagos.

SERAP said it was acting on the basis of the 2021 audited report by the Auditor-General of the Federation, which was released to the public on 27 November 2024. The report raised concerns that large sums of public funds earmarked for critical oil sector operations may be missing or misappropriated.

In its court filings, SERAP contended that the allegations outlined in the report, along with recent remarks by business magnate Aliko Dangote, suggest serious breaches of public trust and violations of both domestic and international anticorruption obligations.

Dangote, President of the Dangote Group, had stated last week that the country’s refineries may never function properly again, despite a reported $18 billion spent on them over the years.

SERAP argued that allowing such large sums to go unaccounted for would undermine efforts to build transparency and accountability in the oil sector and that the failure to investigate or recover the funds contributes to poverty and economic stagnation.

According to the suit, the Auditor-General raised multiple red flags regarding NNPCL’s handling of refinery and oil-related funds. These include funds withdrawn without sufficient documentation, proceeds from crude oil and gas sales diverted before being remitted to the Federation Account, and various deductions from oil royalties and pipeline maintenance accounts without proper explanations.

The Auditor-General expressed concern that the unexplained transactions could result in funding gaps for the national budget and called for recovery of the amounts in question. He also recommended referring suspected individuals to the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices Commission (ICPC).

SERAP stated that the missing money should be recovered and returned to the treasury, in the interest of ordinary Nigerians who continue to suffer from poor access to energy and deteriorating economic conditions.

READ ALSO:

It added that the persistent failure of NNPCL to explain the whereabouts of the funds has eroded public confidence and deprived citizens of benefits from Nigeria’s oil wealth.

In its application, SERAP asked the court to compel the NNPCL to provide a detailed accounting of the funds and to take steps to recover all missing amounts. As at the time of filing this report, NNPCL has not issued any public response to the suit.

The suit, read in part: “According to the recently published 2021 audited report by the Auditor General of the Federation (AGF), the Nigerian National Petroleum Corporation Limited (NNPCL) failed to account for over N825 billion and USD$2.5 billion of public funds meant for ‘refinery rehabilitation’ and repairs, and other oil revenues.”

“The Auditor-General fears that the money may be missing.”

“The NNPCL reportedly failed to account for over N82 billion [N82,951,595,510.47] meant for ‘refinery rehabilitation and repairs.’ The ‘money was deducted from the sale of Crude Oil and Gas between 2020 and 2021’.”

“The Auditor-General fears the money may be missing. He wants the money recovered and remitted to the Federation Account. He also wants the NNPCL ‘to ensure that the amounts due for the Federation Account are not subjected to any deductions before remittance of net.’”

“The NNPCL also reportedly failed to account for over N343 billion [N343,642,598,726.51] ‘being proceeds from domestic crude sales.’ The ‘money, meant for ‘pipelines maintenance and management costs, was unilaterally deducted from the gross domestic crude sales.’”

“The Auditor-General fears ‘the money may have been diverted.’ He wants the money recovered and remitted to the treasury. He also wants the NNPCL to hand over those suspected to be involved to the EFCC and ICPC.”

“The NNPCL also reportedly failed to account for over N83 billion [N83,659,813,739.99] ‘being miscellaneous income from the NNPC joint venture operations from 2016 to 2020.’ The ‘money was withdrawn from the CBN/NNPC sinking fund account [a suspense account].’”

READ ALSO:

“The Auditor-General is concerned that this practice ‘has led the Federation to resort to borrowings.’ He wants ‘the money recovered and remitted to the treasury.’”

“The NNPCL also reportedly failed to account for over N204 billion [N204,853,744,047.39] ‘being unjustified deductions from the oil royalties for 2021.’ The ‘money was due to the Department of Petroleum Resources (DPR) now Nigerian Upstream Petroleum Regulatory Commission (NUPRC).’ The Auditor-General fears ‘the money may have been diverted.’ He wants the money recovered and remitted to the treasury.”

“The NNPCL also reportedly failed to account for over N3.7 billion [N3,748,581,281.27] ‘being money purportedly paid to a Company as a shortfall on sales of MT cargo of PMS.’ The Auditor-General fears the money may be missing.

He wants the money recovered and remitted to the treasury.”

“The NNPCL also reportedly failed to account for over N28 billion [N28,654,179,867.00] ‘being outstanding bridging allowance from NNPC retail for 2021.’”

“The NNPCL failed to account for over N13.5 billion [N13,5559,658,148.91] ‘being outstanding bridging allowance claims from three major oil marketers in 2021.’”

“The Auditor-General is concerned that this ‘may have resulted in difficulty in funding the 2021 budget.’ He wants

‘the money recovered from both the NNPC retail and the major oil marketers and remitted to the Federation Account.’”

“The NNPCL also reportedly failed to account for over N15 billion [N14,134,947,949.80 and N1,087,533,332.62] ‘being outstanding revenues from debts owed by twenty-six marketers for 2021.’ The Auditor-General wants ‘the money recovered from the oil marketers and remitted to the Federation Account.’”

“The NNPCL reportedly failed to account for over $29.6 million [$29,648,970.36] being outstanding royalties payable to the Department of Petroleum Resources CBN account.’ The Auditor-General is concerned this ‘may have resulted in difficulty in funding the 2021 budget.’ He wants the money recovered.’”

“The NNPCL failed to collect over $2 billion [$2,260,448,992.45] ‘being outstanding oil royalties from oil companies for 2021’, and failed to collect over N48 billion [N48,218,163,192.67] ‘also being outstanding oil royalties from oil companies.’”

Refinery repairs: SERAP sues NNPC for alleged misuse of N825bn, $2.5bn

Related Topics:Featured NNPC refinery SERAP

Up Next

Bitcoin soars past $121K, hitting fresh record

Don't Miss

Coscharis President Maduka, MBA students of LBS in robust entrepreneurship session

Business

Dangote Refinery Hikes Petrol Price to ₦995 per Litre Amid Global Oil Price Surge

Published

1 hour ago

March 7, 2026

Trends Admin

Dangote Refinery Hikes Petrol Price to ₦995 per Litre Amid Global Oil Price Surge

The Dangote Petroleum Refinery has raised its Premium Motor Spirit (PMS) gantry price to ₦995 per litre, marking a sharp increase of ₦221 in just four days amid rising global crude oil prices and shipping costs. The move signals further upward pressure on fuel prices nationwide, with retail petrol likely to surpass ₦1,050 per litre in many parts of Nigeria.

A senior refinery official confirmed the revision, stating that the price adjustment reflects recent fluctuations in international oil markets, crude oil replacement costs, and logistics expenses. The official said, “Yes, the price has been reviewed. The new gantry price is now ₦995 per litre.”

This hike follows an earlier increase this week when the refinery raised its ex-depot price from ₦774 to ₦874 per litre, meaning the cost of petrol from Dangote Refinery has risen nearly 29 per cent within four days. Updated pricing data on petroleumprice.ng confirmed the new benchmark for Nigeria’s downstream petroleum sector.

The refinery temporarily halted truck-out operations early Friday, a move often preceding price adjustments, leaving marketers uncertain about future costs. Industry sources noted that this pause in loading activities indicated a likely price increase, which has now been confirmed.

READ ALSO:

Refinery officials emphasised that petrol prices in Nigeria’s fully deregulated market are influenced by global crude oil prices, foreign exchange rates, and supply chain costs, and are not set arbitrarily. They added that the facility has absorbed about 20 per cent of rising costs to reduce the impact on the domestic market.

The development comes amid geopolitical tensions, particularly the US-Iran conflict, which has pushed Brent crude prices above $84 per barrel, fueling additional cost pressures. Dangote Petroleum stated that it will prioritise domestic supply to help insulate Nigerians from global supply shocks.

Data from the Major Energies Marketers Association of Nigeria (MEMAN) shows that imported petrol remains cheaper than locally refined fuel, with landing costs at ₦809.37 per litre, compared to Dangote’s gantry price. Diesel prices reflect a similar trend, with Dangote diesel at ₦1,169.42 per litre versus ₦1,125.70 per litre for imports.

The latest price hike is expected to push retail petrol prices higher, further straining household budgets and increasing transport costs across the country. Consumers and businesses alike are bracing for a surge in energy costs as the ripple effects of the gantry price increase reach filling stations nationwide.

Dangote Refinery Hikes Petrol Price to ₦995 per Litre Amid Global Oil Price Surge

Aviation

FAAN Introduces Hybrid Toll Payment System Following Tinubu’s Directive

Published

1 day ago

March 6, 2026

Trends Admin

FAAN Introduces Hybrid Toll Payment System Following Tinubu’s Directive

The Federal Airports Authority of Nigeria (FAAN) has introduced a temporary hybrid toll payment system at airports nationwide following heavy traffic congestion caused by the rollout of its cashless toll payment policy. The move comes after President Bola Tinubu directed the authority to ease implementation challenges to prevent travel disruptions.

FAAN Managing Director, Mrs. Olubunmi Kuku, told journalists in Lagos on Thursday that the decision followed severe gridlock at major airport toll gates, particularly Murtala Muhammed International Airport (MMIA), Lagos, as motorists struggled to adapt to fully digital payment methods. “He [the President] saw the traffic congestion and directed us to temporarily revert to a hybrid approach,” Kuku said. “This ensures smoother access while we refine the cashless system — it is a win for the industry.”

The hybrid model allows commuters and travellers to pay tolls using a combination of cash, prepaid FAAN cards, e-tags, debit cards, and other electronic options. Kuku emphasized that the arrangement will let FAAN continue its digital payment initiative while still accommodating users who have yet to register or activate electronic payment channels.

READ ALSO:

She highlighted that the authority had registered over 100,000 users on its cashless platform between October 2025 and March 3, 2026, with around 60,000 sign-ups occurring in the final three days before the March 1 rollout deadline. The technology reportedly achieved a 99% success rate during initial operations, demonstrating strong potential for adoption once operational challenges are addressed.

Kuku explained that the initial rollout lacked a comprehensive pilot phase due to the pressure to meet the government’s deadline. The additional time granted by the Presidency now serves as an extended pilot period, enabling FAAN to raise public awareness, onboard private technology partners, and enhance monitoring mechanisms to prevent revenue leakages while cash payments are still allowed.

The MD noted that no new deadline has been set for the complete elimination of cash payments. The focus now is on refining the system, ensuring user convenience, and achieving a smooth transition to a fully digital tolling platform in line with global best practices in airport infrastructure management.

FAAN said the hybrid arrangement aims to prevent delays that could cause passengers to miss flights, while also maintaining transparency in revenue collection and improving overall airport operational efficiency.

FAAN Introduces Hybrid Toll Payment System Following Tinubu’s Directive

Business

NNPC Raises Petrol Price to ₦933 in Lagos, ₦960 in Abuja

Published

2 days ago

March 5, 2026

Trends Admin

NNPC Raises Petrol Price to ₦933 in Lagos, ₦960 in Abuja

The Nigerian National Petroleum Company Limited (NNPC) has increased the pump price of petrol at its retail stations to ₦933 per litre in Lagos and ₦960 per litre in Abuja, triggering fresh concerns among motorists and businesses over rising fuel costs in Nigeria.

The national oil company raised the price by ₦103 in Lagos, moving from ₦830 per litre to ₦933, while motorists in the federal capital Abuja now pay ₦960 per litre, representing an ₦85 increase from the previous ₦875 price.

Checks on Wednesday showed that the new petrol price has already been implemented at several NNPC retail outlets, including stations at Apple Junction and Ago Palace Way in Lagos, while stations along Airport Road in Lugbe, Abuja, were dispensing petrol at the new ₦960 rate.

The latest fuel price hike comes shortly after the Dangote Petroleum Refinery increased its ex-gantry petrol price to ₦874 per litre on March 2, up from ₦774 per litre, a development that has influenced retail pricing across the downstream petroleum sector.

Industry analysts say the rise in petrol prices in Nigeria is closely linked to growing geopolitical tensions in the Middle East, which have unsettled global energy markets and pushed up crude oil prices.

READ ALSO:

Recent market data shows that Brent crude oil rose to about $85 per barrel on March 3, compared with around $72 per barrel recorded on February 28, intensifying pressure on petrol landing costs for markets that still rely partly on imports.

Experts note that Nigeria’s deregulated fuel market means pump prices now fluctuate in response to international oil prices, exchange rate volatility, and supply chain costs.

Meanwhile, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on the federal government to ensure steady crude oil supply to domestic refineries, particularly as Nigeria seeks to strengthen local refining capacity.

The association warned that continued instability in global oil markets could weaken the naira, raise petrol prices further, and push inflation higher, thereby worsening the cost-of-living challenges faced by Nigerians.

Energy stakeholders have also stressed the importance of expanding local refining operations, including production from the Dangote refinery and rehabilitation of government-owned refineries, to reduce dependence on imported fuel.

The latest price adjustment reflects the ongoing transition in Nigeria’s downstream petroleum sector following the removal of fuel subsidies and the adoption of a market-driven pricing system.

Motorists across Lagos, Abuja and other major cities have expressed concern that rising petrol prices could increase transportation costs, food prices and overall inflation, placing additional pressure on households and businesses.