The Socio-Economic Rights and Accountability Project (SERAP) has called on the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, to explain the alleged disappearance of ₦825 billion and $2.5 billion earmarked for refinery rehabilitation and other oil revenues.
The request follows a 2021 audit report by the Auditor-General of the Federation, which highlighted significant financial discrepancies in NNPCL’s operations. The funds in question include deductions from crude oil sales for refinery repairs, pipelines maintenance costs, and oil royalties.
In a letter dated January 4, 2025, and signed by SERAP Deputy Director Kolawole Oluwadare, the organization demanded transparency and accountability, urging Kyari to identify those responsible and hand them over to anti-corruption agencies such as the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC).
Allegations Highlighted by the Auditor-General
- ₦825 Billion for Refinery Repairs: Funds deducted from crude oil and gas sales between 2020 and 2021 for refinery rehabilitation were unaccounted for.
- ₦343 Billion in Pipeline Maintenance Costs: Proceeds from domestic crude sales were reportedly diverted instead of being remitted to the Federation Account.
- ₦83 Billion in Miscellaneous Income: Funds withdrawn from the NNPCL-CBN sinking fund account were unaccounted for, contributing to federal borrowing.
- ₦204 Billion in Unjustified Deductions: Oil royalties for 2021 meant for the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) were allegedly diverted.
- $29.6 Million in Royalties: Outstanding oil royalties payable to the Department of Petroleum Resources were left uncollected.
- $2 Billion and ₦48 Billion in Oil Royalties: Funds owed by oil companies were not collected, impacting the country’s budget funding.
SERAP’s Recommendations
SERAP also suggested inviting former President Olusegun Obasanjo, alongside the EFCC and ICPC, to inspect Nigeria’s refineries and monitor expenditures. The organization lauded Kyari’s prior invitation to Obasanjo, urging it to be formalized to enhance transparency.
SERAP emphasized that these allegations represent a gross violation of public trust and undermine Nigeria’s economic development, exacerbating poverty and depriving citizens of critical resources.
Legal Actions Threatened
SERAP has given the NNPCL a seven-day deadline to address the issues and implement the recommended measures. If no action is taken, the organization plans to pursue legal avenues to compel compliance.
The letter concluded by invoking Section 15(5) of the Nigerian Constitution, which mandates public institutions to eradicate corrupt practices and abuse of power, and called on the NNPCL to recover all missing funds for the benefit of Nigerians.
