The Socio-Economic Rights and Accountability Project (SERAP) has demanded that the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, explain the whereabouts of over ₦825 billion and $2.5 billion reportedly allocated for refinery rehabilitation and other oil-related expenditures.
The call for accountability follows revelations in the 2021 Annual Report by the Auditor-General of the Federation, published on November 27, 2024. The report details unaccounted funds and alleged financial irregularities that may have contributed to Nigeria’s economic struggles.
In a letter dated January 4, 2025, signed by SERAP Deputy Director Kolawole Oluwadare, the organization urged Kyari to take decisive action.
“We urge you to account for and explain the whereabouts of the missing funds and to identify those suspected to be responsible for the alleged disappearance of public money,” SERAP stated.The Auditor-General’s report detailed several financial discrepancies, including:
₦82.95 billion deducted from crude oil and gas sales between 2020 and 2021, supposedly for refinery rehabilitation.
₦343.64 billion from domestic crude sales, allegedly diverted as pipeline maintenance costs.
₦204.85 billion in unjustified deductions from oil royalties owed to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
$29.6 million in unpaid royalties to the Department of Petroleum Resources (DPR).
$2.26 billion and ₦48.22 billion in uncollected oil royalties from oil companies.The Auditor-General also raised concerns over ₦83.6 billion in miscellaneous income from NNPCL joint venture operations and ₦15 billion owed by oil marketers. The report warns that these financial lapses may have been diverted or misappropriated.
In addition to explaining the missing funds, SERAP urged Kyari to:
1. Identify and prosecute suspects through the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC).
2. Invite former President Olusegun Obasanjo for a tour of the refineries to promote transparency.
3. Engage EFCC and ICPC officials to monitor refinery operations and expenditures.
“Your public invitation to former President Obasanjo to inspect the refineries is commendable, but we urge you to formalize this invitation and include anti-corruption agencies to ensure accountability,” SERAP said.SERAP has given the NNPCL seven days to act on its recommendations. The organization warned that failure to comply would result in legal action to compel accountability.
“The allegations of missing public funds undermine the economic development of the country and trap millions of Nigerians in poverty,” SERAP noted.This demand for accountability comes as Nigerians continue to bear the consequences of missing public funds and widespread corruption. SERAP emphasized the need for the NNPCL to comply with constitutional provisions, particularly Section 15(5) of the 1999 Constitution, which mandates public institutions to abolish corrupt practices.
“The Auditor-General has consistently documented reports of missing funds, yet Nigerians are left to suffer the impact of these mismanaged resources,” SERAP concluded.The NNPCL is yet to issue an official response to the allegations.
