The Socio-Economic Rights and Accountability Project (SERAP) has called on the Nigerian National Petroleum Company Limited (NNPCL) and its Group Chief Executive Officer, Mele Kyari, to account for an alleged missing N825 billion and $2.5 billion allocated for refinery rehabilitation and other oil revenues.
The funds, highlighted in the 2021 annual report by the Auditor-General of the Federation, were reportedly unaccounted for, raising concerns about transparency and possible corruption.
SERAP, in a letter dated January 4, 2025, and signed by its Deputy Director Kolawole Oluwadare, urged the NNPCL to recover the funds and hand over suspects to the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices Commission (ICPC).
The organisation stated that the auditor general’s report highlights significant financial discrepancies, including ₦82.9 billion meant for refinery rehabilitation and repairs, which was deducted from crude oil and gas sales but remains unaccounted for.
Additionally, SERAP noted that ₦343.6 billion from domestic crude sales was allegedly diverted under the guise of pipeline maintenance, while ₦204.8 billion in unjustified oil royalty deductions due to the Department of Petroleum Resources(DPR) was reportedly missing.
Furthermore, the organisation stated that ₦28.6 billion in outstanding bridging allowances from NNPC retail remains unpaid, and $2.26 billion alongside ₦48 billion in outstanding oil royalties from oil companies remain uncollected.
The report also unveiled numerous other financial irregularities, including unaccounted debts, miscellaneous income, and unjustified payments to companies, which may have contributed to funding difficulties for the 2021 budget.
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SERAP commended Kyari for his recent invitation to former President Olusegun Obasanjo to tour Nigeria’s refineries, including those in Port Harcourt and Warri, but urged him to formalize the invitation and include the EFCC and ICPC to ensure transparency in refinery operations and spending.
“The invitation to Obasanjo is not disrespectful but rather consistent with constitutional and international anti-corruption obligations,” SERAP said, urging Kyari to embrace this opportunity to rebuild public trust.
SERAP warned that failure to take corrective action within seven days would result in legal action to compel compliance in the public interest.
“These allegations, if true, constitute a grave violation of public trust and undermine Nigeria’s economic development,” SERAP noted.
The group also called on NNPCL to ensure that oil revenues were remitted fully to the Federation Account without unauthorized deductions.
It also urged the organization to recover and account for all missing funds, prioritize local refineries, and implement digital tracking systems to monitor petroleum products and prevent smuggling.
The alleged missing funds have far-reaching implications, contributing to Nigeria’s reliance on imported petroleum products, limited refining capacity, and the economic burden on citizens, who continue to face high energy costs post-subsidy removal.
SERAP emphasised that transparency and accountability in public finance management are essential for Nigeria’s economic stability and growth.
