Nigeria’s troubled power sector has come under renewed legal and public scrutiny following a lawsuit filed by the Socio-Economic Rights and Accountability Project (SERAP) against the Minister of Power and the Nigerian Bulk Electricity Trading Plc. (NBET) over allegations of unaccounted public funds amounting to ₦128 billion.
The suit, filed last Friday at the Federal High Court, stems from findings contained in the latest annual report of the Auditor-General of the Federation, published on 9 September 2025. The report details extensive financial irregularities within the Ministry of Power and NBET, raising concerns about transparency, accountability, and the link between corruption and Nigeria’s chronic electricity crisis.
Details of the Lawsuit
In suit number FHC/ABJ/CS/143/2026, SERAP is asking the court to issue orders of mandamus compelling Adebayo Adelabu and Nigerian Bulk Electricity Trading Plc to fully account for the alleged missing or diverted ₦128 billion.
Beyond accounting for the funds, SERAP is also seeking court orders directing the defendants to disclose how the money was spent, including dates of disbursement, identities of beneficiaries or contractors, and the registered names and addresses of companies involved. The organisation further wants the names and official designations of public officers who authorised or participated in the release of the disputed funds to be made public.
According to SERAP, these disclosures are necessary to restore public trust in the power sector and to confront what it describes as entrenched impunity in the management of electricity-related public finances.
Auditor-General’s Findings
The lawsuit relies heavily on allegations outlined in the Auditor-General’s audited report, which paints a troubling picture of financial management within the Ministry of Power and NBET.
Among the findings cited by SERAP are claims that the Ministry of Power failed to account for over ₦4.4 billion transferred to project accounts linked to the Mambilla, Zungeru, and Kashimbilla power projects, with no evidence of how the funds were utilised. The report also flagged over ₦95 billion allegedly paid to contractors for projects for which there were no documents or proof of execution.
Additional allegations include unapproved foreign travel expenses, unexplained expenditures on digital platforms, and large advances paid to staff beyond statutory limits. In each case, the Auditor-General reportedly expressed fears that the funds may have been diverted and called for their recovery and remittance to the national treasury.
NBET, according to the same report, was accused of irregular contract awards, unauthorised transfers to unnamed sub-accounts, undocumented payments to power generation companies, and extra-budgetary spending exceeding ₦1 billion without approvals from relevant authorities.
Power Sector Crisis and Public Impact
SERAP argues that these alleged financial abuses are not abstract accounting issues but have direct consequences for ordinary Nigerians. The organisation linked corruption in the power sector to persistent grid failures, including the first reported national grid collapse of 2026, which plunged large parts of the country into darkness.
Despite poor supply, consumers continue to face rising electricity tariffs and estimated billing, deepening public frustration. SERAP maintains that Nigerians are effectively paying twice—through taxes and electricity bills—for a system that continues to underperform.
Key Implications
The lawsuit carries significant political and institutional implications:
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Accountability Test: The case could set a precedent for enforcing transparency in one of Nigeria’s most opaque sectors.
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Governance Pressure: Senior officials may face increased scrutiny over procurement practices and financial controls.
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Power Sector Reform: If successful, the suit could strengthen reform efforts aimed at stabilising electricity supply and reducing grid collapses.
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Public Confidence: Judicial intervention may help restore some measure of trust in state institutions responsible for critical infrastructure.
SERAP argues that granting the reliefs sought would not only address specific allegations but also advance Nigeria’s obligations under the Constitution and international anti-corruption conventions, including the UN Convention against Corruption.
What Happens Next
No date has yet been fixed for the hearing of the suit. As proceedings unfold, attention will be on whether the court compels detailed disclosures from the Ministry of Power and NBET, and whether any recoveries or sanctions follow.
For a country where electricity supply remains a major constraint on economic growth and quality of life, the outcome of this case could have far-reaching consequences beyond the courtroom.
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