The federal high court in Abuja, on Monday, January 5, has ordered the Nigeria National Petroleum Company Limited (NNPCL) to disclose details of the emergency $3bn crude-for-cash loan it obtained from the African Export-Import Bank (Afreximbank) to ensure transparency and accountability in the management of public funds.
Delivering judgment in Suit No. FHC/ABJ/CS/1631/2023, Justice Emeka Nwite granted an order of mandamus in favour of the Human and Environmental Development Agenda Resource Centre (HEDA), directing NNPC Ltd to supply comprehensive information on the loan.
The suit was filed on behalf of HEDA by its counsel, Seidu Mohammed, under the Freedom of Information (FoI) Act.
Nwite ordered NNPC Ltd to disclose the anticipated benefits of the $3bn loan to both the company and the Nigerian economy, as well as its short-term and long-term economic implications.
The court also directed the national oil company to clarify the specific crude oil grades or categories used in negotiating the loan, the exchange rate applied to crude oil repayment, and the quality of the crude oil sold or pledged as collateral under the agreement.
In his ruling, Nwite held that the information sought by HEDA was simple and harmless and noted that NNPC Ltd had failed to justify its refusal to disclose the details.
“The court does not agree that the disclosure of this simple information has the effect of harming any third-party interest in any way or affecting any contractual negotiation, most especially when there is nothing before the court to show the harm it would cause,” Nwite said.
He added that even if disclosure could potentially affect third-party interests, Section 15(4) of the FOI Act empowers the court to weigh such harm against the overriding public interest.
“Due to the nature of the transaction, which has great economic impact on Nigerians, and the fact that the oil sector is the major backbone of the Nigerian economy, the court cannot, in all honesty, decline the request of the applicant,” he ruled.
HEDA’s Chairman, Olanrewaju Suraju, described the verdict as a significant victory for transparency and accountability in Nigeria’s oil and gas sector.
Suraju said, “The judgment marks another milestone in HEDA’s demand for financial and projects transparency in NNPC Limited.
“It also sets a precedent for public access to information on government projects and loan agreements.”
HEDA also urged the media, civil society organisations, and other stakeholders to intensify calls for accountability from public institutions and support efforts to curb corruption and mismanagement of public resources.
Comments