The Socio-Economic Rights and Accountability Project (SERAP) has asked Nigerian National Petroleum Company Limited (NNPCL) to “account for and explain the whereabouts of the alleged missing N825 billion and $2.5 billion meant for ‘refinery rehabilitation’ and other oil revenues.”
The amounts are documented in the 2021 annual report by the Auditor-General of the Federation published on Thursday 27 November, 2024.
SERAP urged the Group Chief Executive Officer of NNPCL, Mele Kyari “to identify those suspected to be responsible for the disappeared oil money and hand them over to the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC).”
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SERAP also urged him “to formally invite former president Olusegun Obasanjo to tour Nigeria’s refineries and to extend your invitation to the EFCC and ICPC to monitor the operations of the refineries, and any spending on them, including the Port Harcourt and Warri refineries.”
In the letter dated 4 January 2025 and signed by SERAP deputy director Kolawole Oluwadare, the organisation said: “We welcome your timely public invitation to former president Obasanjo ‘to tour the Port Harcourt and Warri refineries.
“While your invitation is clearly not ‘disrespectful’, contrary to the claims by the former president because no one is above the law, we urge you to formally invite him, and to extend your invitation to the EFCC and ICPC for the sake of transparency and accountability.”
“Your public invitation to Obasanjo is well-justified, and entirely consistent with the letter and spirit of the Nigerian Constitution 1999 [as amended] and the country’s international obligations on the obligations of the NNPCL and the roles of citizens in preventing and combating grand corruption,” SERAP further said.
“The grim allegations by the Auditor-General suggest a grave violation of the public trust and the provisions of the Nigerian Constitution, national anticorruption laws, and the country’s international obligations.”
“The allegations have also undermined economic development of the country, trapped the majority of Nigerians in poverty and deprived them of opportunities.”
“We would be grateful if the recommended measures are taken within 7 days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall consider appropriate legal actions to compel the NNPCL to comply with our requests in the public interest.”
“According to the recently published 2021 audited report by the Auditor General of the Federation (AGF), the Nigerian National Petroleum Corporation Limited (NNPCL) failed to account for over N825 billion and USD$2.5 billion of public funds meant for ‘refinery rehabilitation’ and repairs, and other oil revenues,” the letter, read in part.
“The Auditor-General fears that the money may be missing.”
“The NNPCL reportedly failed to account for over N82 billion [N82,951,595,510.47] meant for ‘refinery rehabilitation and repairs.’ The ‘money was deducted from the sale of Crude Oil and Gas between 2020 and 2021’.”
“The Auditor-General fears the money may be missing. He wants the money recovered and remitted to the Federation Account. He also wants the NNPCL ‘to ensure that the amounts due for the Federation Account are not subjected to any deductions before remittance of net.’”
“The NNPCL also reportedly failed to account for over N343 billion [N343,642,598,726.51] ‘being proceeds from domestic crude sales.’ The ‘money, meant for ‘pipelines maintenance and management costs, was unilaterally deducted from the gross domestic crude sales.’”
“The Auditor-General fears ‘the money may have been diverted.’ He wants the money recovered and remitted to the treasury. He also wants the NNPCL to hand over those suspected to be involved to the EFCC and ICPC.”
“The NNPCL also reportedly failed to account for over N83 billion [N83,659,813,739.99] ‘being miscellaneous income from the NNPC joint venture operations from 2016 to 2020.’ The ‘money was withdrawn from the CBN/NNPC sinking fund account [a suspense account].’”
“The Auditor-General is concerned that this practice ‘has led the Federation to resort to borrowings.’ He wants ‘the money recovered and remitted to the treasury.’”
“The NNPCL also reportedly failed to account for over N204 billion [N204,853,744,047.39] ‘being unjustified deductions from the oil royalties for 2021.’ The ‘money was due to Department of Petroleum Resources (DPR) now Nigerian Upstream Petroleum Regulatory Commission (NUPRC).’”
“The Auditor-General fears ‘the money may have been diverted.’ He wants the money recovered and remitted to the treasury.”
“The NNPCL also reportedly failed to account for over N3.7 billion [N3,748,581,281.27] ‘being money purportedly paid to a Company as a shortfall on sales of MT cargo of PMS.’ The Auditor-General fears the money may be missing. He wants the money recovered and remitted to the treasury.”
“The NNPCL also reportedly failed to account for over N28 billion [N28,654,179,867.00] ‘being outstanding bridging allowance from NNPC retail for 2021.’”
“The NNPCL failed to account for over N13.5 billion [N13,5559,658,148.91] ‘being outstanding bridging allowance claims from three major oil marketers in 2021.’”
“The Auditor-General is concerned that this ‘may have resulted in difficulty in funding the 2021 budget.’ He wants ‘the money recovered from both the NNPC retail and the major oil marketers and remitted to the Federation Account.’”
“The NNPCL also reportedly failed to account for over N15 billion [N14,134,947,949.80 and N1,087,533,332.62] ‘being outstanding revenues from debts owed by twenty-six marketers for 2021.’ The Auditor-General wants ‘the money recovered from the oil marketers and remitted to the Federation Account.’”
“The NNPCL reportedly failed to account for over $29.6 million [$29,648,970.36] ‘being outstanding royalties payable to the Department of Petroleum Resources CBN account.’ The Auditor-General is concerned this ‘may have resulted in difficulty in funding the 2021 budget.’ He wants the money recovered.’”
“The NNPCL failed to collect over $2 billion [$2,260,448,992.45] ‘being outstanding oil royalties from oil companies for 2021’, and failed to collect over N48 billion [N48,218,163,192.67] ‘also being outstanding oil royalties from oil companies.’”
“The Auditor-General fears that ‘the money may be missing.’ He is concerned that this ‘may have resulted in difficulty in funding the 2021 budget.’ He wants ‘the money recovered from the oil companies and remitted to the Federation Account.’”
SERAP notes that Section 15(5) of the Nigerian Constitution 1999 (as amended) requires public institutions to abolish all corrupt practices and abuse of power.”
“The Auditor-General has for many years documented reports of disappearance of public funds from the NNPC. Nigerians continue to bear the brunt of these missing public funds meant for refinery rehabilitation.”
