Court grants HEDA’s application, orders NNPCL to explain $3b Afreximbank loan

A Federal High Court sitting in Abuja has ordered Nigerian National Petroleum Company Limited (NNPCL) to supply information regarding the emergency $3 billion “crude-for-cash” loan obtained by the company from the African Export-Import Bank (Afreximbank) to the applicant, HEDA Resource Centre.

Delivering judgment in Suit No. FHC/ABJ/CS/1631/2023, brought on behalf of HEDA by Seidu Mohammed, Justice Emeka Nwite ruled in favour of HEDA’s request for an order of mandamus, directing NNPCL to provide detailed information about the loan.

Specifically, the court ordered NNPC Limited to disclose the anticipated benefits of the $3 billion crude oil loan to the NNPCL and the Nigerian economy, as well as the potential economic implications of the loan, encompassing both short-term and long-term effects on the Nigerian economy.

The court further ordered clarification on the specific oil grades or categories used in negotiating the loan exchange; the exchange rate applied under the terms of the agreement for crude oil repayment; and the quality of the oil being sold or used as collateral for the loan.

According to the court, the information being sought is simple and harmless, and the NNPCL has no valid reason to deny HEDA access to the information under the Freedom of Information Act.
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”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.
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”Moreover, Section 15(4) of the FOI Act, assuming without conceding that disclosure has the capacity to harm any third-party interest, gives this court the power to weigh the harm against the public interest.

”The court is of the view that, due to the nature of the transaction which has a 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,” the judge held.

Reacting to the judgment, HEDA’s Chairman, Mr Olanrewaju Suraju, described the decision as a major win for transparency and accountability in the oil and gas sector of Nigeria.

“The judgment marks another milestone in HEDA’s demand for financial and project transparency in the NNPCL. It also sets a precedent for public access to information on government projects and loan agreements. We expect the NNPCL to comply fully with the Court’s order and provide the required information in a timely manner,” Suraju urged.

The organisation also called on all stakeholders, including the media and civil society organisations, to join in demanding accountability from public institutions and to support the fight against corruption and financial recklessness.