The Federal High Court in Abuja has ordered the Nigeria National Petroleum Company Limited (NNPC Ltd) to disclose details of the emergency $3 billion “crude-for-cash” loan it obtained from the African Export-Import Bank (Afreximbank) to the Human and Environmental Development Agenda (HEDA) Resource Centre.
Delivering judgment in Suit No. FHC/ABJ/CS/1631/2023, filed by HEDA and argued by its counsel, Barrister Seidu Mohammed, Justice Emeka Nwite granted an order of mandamus compelling NNPC Ltd to release comprehensive information on the loan transaction.
Specifically, the court directed NNPC Ltd to disclose the anticipated benefits of the $3 billion loan to the company and the Nigerian economy, as well as the short- and long-term economic implications of the facility. The court also ordered the company to provide clarification on the specific crude oil grades used in negotiating the loan, the exchange rate applied for crude oil repayment, and the quality of the crude oil sold or pledged as collateral under the agreement.
Justice Nwite held that the information requested by HEDA is “simple and harmless” and that NNPC Ltd has no valid basis for withholding it under the Freedom of Information (FOI) Act.
“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,” the judge ruled.
He further noted that even if disclosure could potentially affect third-party interests, Section 15(4) of the FOI Act empowers the court to balance such concerns against overriding public interest.
“The Court is of the view that, 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,” Justice Nwite added.
Reacting to the judgment, Chairman of HEDA Resource Centre, Mr. Olanrewaju Suraju, hailed the judgment and described it as a major victory for transparency and accountability in Nigeria’s oil and gas sector.
“This judgment marks another milestone in HEDA’s demand for financial and project transparency in NNPC Limited. It also sets a strong precedent for public access to information on government projects and loan agreements,” Suraju said.
He expressed confidence that NNPC Ltd would comply fully with the court’s directive and release the required information promptly.
HEDA also called on the media, civil society organisations and other stakeholders to intensify demands for accountability from public institutions and to support ongoing efforts to curb corruption and financial recklessness in the management of Nigeria’s resources.