By Tayo Busayo, Abuja
DAILY COURIER – The Socio-Economic Rights and Accountability Project (SERAP) has called on the Nigerian National Petroleum Company Limited (NNPCL) to provide a detailed account of N825 billion and $2.5 billion allegedly missing from funds earmarked for refinery rehabilitation and other oil-related revenues. This demand follows revelations in the 2021 annual report published by the Auditor-General of the Federation on November 27, 2024.
In a letter dated January 4, 2025, and signed by SERAP Deputy Director Kolawole Oluwadare, the organization urged NNPCL’s Group Chief Executive Officer, Mele Kyari, to identify those responsible for the alleged missing funds and hand them over to the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC).
SERAP highlighted the need for greater transparency in NNPCL’s operations, recommending that Kyari formally invite former President Olusegun Obasanjo to tour the country’s refineries. SERAP also called for EFCC and ICPC representatives to oversee refinery operations and expenditures, particularly for the Port Harcourt and Warri refineries, to ensure public accountability.
The letter read in part:
“We welcome your public invitation to former President Obasanjo to tour the Port Harcourt and Warri refineries. While your invitation is not disrespectful, contrary to claims by the former president, we urge you to formalize it and include invitations to anti-corruption agencies for the sake of transparency.”
According to the Auditor-General’s report, the NNPCL allegedly failed to account for the following funds:
- N82.9 billion: Deducted from crude oil and gas sales for refinery rehabilitation and repairs.
- N343.6 billion: Proceeds from domestic crude sales reportedly diverted for pipeline maintenance costs.
- N204.8 billion: Unjustified deductions from oil royalties due to the Department of Petroleum Resources (now NUPRC).
- $2.26 billion: Outstanding oil royalties from oil companies.
- N83.6 billion: Withdrawals from the NNPC joint venture operations’ sinking fund account.
- $29.6 million: Uncollected royalties from oil marketers.
The report expressed concerns that these discrepancies have led to revenue shortfalls, forcing the federal government to resort to borrowing and undermining the country’s economic stability.
SERAP emphasized the adverse effects of these alleged financial mismanagements on Nigeria's economic development and public welfare. "The disappearance of public funds has trapped the majority of Nigerians in poverty, depriving them of critical opportunities for growth," the letter stated.
The organization warned that it would consider legal actions against the NNPCL if no steps are taken within seven days to address the allegations and recover the funds.
Citing Section 15(5) of the Nigerian Constitution, SERAP reiterated the obligation of public institutions to eliminate corrupt practices and abuse of power. It called on NNPCL to uphold this mandate by cooperating fully with anti-corruption agencies and ensuring accountability.
“The grim allegations documented by the Auditor-General suggest grave violations of public trust and national laws. Transparency in managing oil revenues is crucial to economic development and reducing poverty in Nigeria,” SERAP noted.
SERAP pointed out that the Auditor-General has consistently reported missing funds in NNPCL’s operations over the years, calling for immediate reforms to halt this trend.
As public pressure mounts, all eyes remain on NNPCL’s response to these allegations. Nigerians await a resolution that restores confidence in the management of the country’s oil resources, critical to its economic and social development.
