The Socio-Economic Rights and Accountability Project (SERAP) has called on President Bola Tinubu to order an investigation into allegations that over N26 billion in public funds were misappropriated, diverted, or stolen from the Petroleum Technology Development Fund (PTDF) and the Federal Ministry of Petroleum Resources in 2021.
SERAP’s demand follows revelations from the 2021 audited report released by the Office of the Auditor-General of the Federation on November 13, 2024.
The organization urged the President to direct Attorney General Lateef Fagbemi, and anti-corruption agencies to investigate the claims and prosecute anyone found responsible.
In a letter dated February 1, 2025, and signed by Deputy Director Kolawole Oluwadare, SERAP emphasised the importance of accountability in the oil sector.
“There is a legitimate public interest in ensuring justice and accountability for these grave allegations. Tackling corruption in the oil sector would help address the budget deficit and Nigeria’s debt crisis,” the letter read.
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SERAP also urged the government to recover any missing funds and use them to reduce the deficit in the 2025 budget and ease the country’s mounting debt burden.
According to the Auditor-General’s report, several financial irregularities were uncovered in the Petroleum Technology Development Fund (PTDF)
The report revealed that N25.6 billion was spent on contracts without supporting documents, raising concerns about possible diversion of funds.
Additionally, N326 million was deposited in two banks without proper accountability.
The PTDF also allocated N107 million for a library automation system at the Petroleum Training Institute (PTI) without securing approval from the National Information Technology Development Agency (NITDA).
Furthermore, the agency paid N46 million to three companies without proof of service delivery, with one contractor receiving payment for services rendered before their official engagement.
Another irregularity highlighted was the failure to remit N60 million instamp duty from capital contracts awarded in 2019 and 2020.
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The report also found that N64 million was paid for store items that were never supplied, while N41 million was disbursed for goods and services that were never delivered, with no invoices or receipts to validate the payments.
The Auditor-General’s report also uncovered financial misconduct within the Federal Ministry of Petroleum Resources.
The ministry allegedly spent N137 million from capital funds on recurrent expenses without obtaining approval from the National Assembly or the Minister of Finance.
Additionally, the ministry paid N232 million to seven companies for consultancy services related to Niger Delta engagements without providing any details on the nature of the work or the locations of the engagements.
The Auditor-General described these transactions as fictitious.
Further scrutiny of the ministry’s financial records revealed that N25 million in taxes collected from contractor payments was not remitted.
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There were also concerns over the irregular payment of N43 million for ceiling repairs.
The report further exposed that between March and December 2021, the ministry granted cash advances totalling N74 million to officers, which remained unaccounted for.
SERAP has given the government seven days to take action, warning that failure to act could lead to legal action to compel compliance.
“Nigeria’s wealth should serve its people, not be lost to corruption. Addressing these issues would ensure restitution, and compensation, and prevent future abuses,” the organisation stated.
SERAP emphasized that the Nigerian government has multiple legal obligations to act on the allegations of corruption.
Section 13 of the Nigerian Constitution mandates that authorities adhere to the principles outlined in Chapter 2, which include ensuring transparency and accountability in governance.
Additionally, Section 15(5) explicitly requires the government to take necessary measures to eliminate corruption and prevent the abuse of power.
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Sections 16(1) and 16(2) further reinforce this responsibility by mandating that Nigeria’s material resources be harnessed and distributed to serve the common good of all citizens.
Beyond national laws, Nigeria is also bound by international commitments.
SERAP cited the United Nations (UN) and African Union (AU) conventions on corruption, which compel state parties to conduct thorough investigations into corruption allegations and impose effective, proportionate, and dissuasive sanctions against those found guilty.