HEDA Secures Court Order Compelling NNPC to Disclose Details of $3bn Afreximbank Crude-for-Cash Loan
The Federal High Court in Abuja has ordered the Nigeria National Petroleum Company Limited (NNPC Limited) to disclose comprehensive details of the $3 billion emergency “crude-for-cash” loan it obtained from the African Export-Import Bank (Afreximbank), following a suit filed by the Human and Environmental Development Agenda (HEDA) Resource Centre.
Delivering judgment in Suit No. FHC/ABJ/CS/1631/2023, Hon. Justice Emeka Nwite granted HEDA’s application for an order of mandamus, directing NNPC Limited to release the information sought under the Freedom of Information (FOI) Act. The suit was instituted on behalf of HEDA by its counsel, Barrister Seidu Mohammed.
The court ordered NNPC Limited to disclose the anticipated benefits of the $3 billion loan to the national oil company and the Nigerian economy, as well as the short-term and long-term economic implications of the transaction. It also directed the company to clarify the specific crude oil grades used in negotiating the loan, the exchange rate applied in repaying the facility with crude oil, and the quality of the crude deployed as repayment or collateral.
Justice Nwite held that the information requested by HEDA was neither sensitive nor capable of causing harm, stressing that NNPC Limited 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,” the judge ruled.
Relying on Section 15(4) of the FOI Act, the court further held that even if disclosure were capable of affecting third-party interests, public interest considerations outweighed such concerns.
According to the court, the transaction has significant economic implications for Nigerians, given that the oil sector remains the backbone of the national economy, making transparency imperative.
Reacting to the judgment, HEDA Chairman, Mr. Olanrewaju Suraju, described the ruling as a major victory for transparency and accountability in Nigeria’s oil and gas sector.
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“The 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 loan agreements,” Suraju said, expressing confidence that NNPC Limited would comply fully and in a timely manner.
HEDA also called on the media and civil society organisations to sustain pressure on public institutions to uphold transparency and accountability, particularly in transactions with far-reaching implications for the Nigerian economy.
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