The Socio-Economic Rights and Accountability Project (SERAP) has called on Mr. Mele Kolo Kyari, Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), to provide a comprehensive account of the alleged disappearance of N825 billion and $2.5 billion allocated for refinery rehabilitation and other oil revenues.
These discrepancies were highlighted in the 2021 Auditor-General’s report, released on November 27, 2024.
In an open letter dated January 4, 2025, signed by SERAP’s Deputy Director, Kolawole Oluwadare, the organization demanded immediate action to identify and prosecute those responsible for the missing funds.
SERAP urged Mr. Kyari to hand over suspects to the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC).
SERAP also proposed a formal invitation to former President Olusegun Obasanjo to tour Nigeria’s refineries alongside officials from the ICPC and EFCC to ensure transparency and monitor expenditures, particularly at the Port Harcourt and Warri refineries.
According to the 2021 audit report, the NNPCL failed to account for multiple sums of public funds, including: N82.95 billion: Deducted from crude oil and gas sales between 2020 and 2021 for refinery rehabilitation and repairs. N343.64 billion: Proceeds from domestic crude sales reportedly diverted for pipeline maintenance and management costs. N83.66 billion: Withdrawn from the CBN/NNPC sinking fund account as “miscellaneous income” from joint venture operations.
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N204.85 billion: Unjustified deductions from oil royalties owed to the Department of Petroleum Resources (DPR), now the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
N3.75 billion: Purported payments to a company for shortfall claims related to PMS sales.
N28.65 billion and N13.55 billion: Outstanding bridging allowance claims from NNPC retail and major oil marketers in 2021.
$29.65 million and $2.26 billion: Outstanding royalties owed by oil companies.
The Auditor-General expressed concerns that these funds might have been diverted, resulting in budgetary shortfalls and increased borrowing by the government.
SERAP commended Mr. Kyari’s earlier public invitation to former President Obasanjo for refinery tours but emphasized the need for formal involvement of anti-corruption agencies.
The organization also highlighted the constitutional duty of public institutions to eliminate corrupt practices under Section 15(5) of the Nigerian Constitution.
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“The grim allegations by the Auditor-General suggest a grave violation of public trust and a blatant disregard for constitutional and international obligations. These financial irregularities have deepened poverty, hindered economic development, and trapped millions of Nigerians in hardship,” SERAP stated.
The letter further warned that failure to act within seven days would compel the organization to pursue legal action in the public interest.
SERAP insists that addressing these discrepancies is critical for restoring public trust and ensuring efficient use of public resources. The organization reiterated its commitment to holding NNPCL accountable, urging immediate recovery and remittance of the missing funds to the Federation Account.
This development underscores Nigeria’s ongoing struggle with financial accountability in the oil sector, which remains a critical pillar of the nation’s economy.
