NNPC Faces ₦2.27tn Lawsuits as Legal Risks Deepen
The Nigerian National Petroleum Company Limited (NNPC) is facing mounting legal exposure, with pending lawsuits estimated at ₦2.27 trillion, representing a 256 per cent increase in potential liabilities.
The sharp rise in litigation risks was disclosed in the company’s latest financial and operational review, raising concerns over the possible impact on NNPC’s financial stability and long-term investment plans.
According to the report, the lawsuits stem from a range of issues, including contractual disputes, oil and gas supply agreements, joint venture obligations, tax claims, environmental liabilities and legacy matters inherited from the defunct Nigerian National Petroleum Corporation.
Analysts warn that if judgments go against the national oil company, the liabilities could significantly strain its cash flow, affect profitability and limit its capacity to fund upstream and downstream projects.
A senior industry source noted that while not all the claims may result in payouts, the scale of the exposure underscores the need for stronger contract management, dispute resolution mechanisms and legal risk controls within the company.
“Some of these cases have been in court for years, while others are recent. The increase reflects both inherited liabilities and new disputes arising from commercial operations,” the source said.
NNPC has maintained that it is actively contesting many of the claims and has made provisions where necessary in line with accounting standards. The company also said it is pursuing out-of-court settlements in some cases to reduce prolonged litigation and associated costs.
The development comes as NNPC continues its transition into a commercially driven entity under the Petroleum Industry Act (PIA), with expectations of improved governance, transparency and financial discipline.
Observers say how the company manages the growing legal risks will be crucial to sustaining investor confidence and safeguarding Nigeria’s oil and gas revenues amid ongoing sector reforms.
