The Socio-Economic Rights and Accountability Project (SERAP) has called on the Nigerian National Petroleum Company Limited (NNPC) to explain allegations of missing funds totalling over N825 billion and $2.5 billion. These funds, according to SERAP, were meant for refinery rehabilitation and other critical projects.
The alleged mismanagement of these funds was detailed in the 2021 Auditor General’s report, published on 27 November 2024. In response, SERAP sent a letter dated 4 January 2025 to NNPC Group Chief Executive Officer, Mele Kyari, urging him to investigate, identify those responsible, and involve the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC).
Call for Transparency
SERAP also recommended that former President Olusegun Obasanjo be formally invited to inspect the Port Harcourt and Warri refineries, alongside representatives from the EFCC and ICPC, to ensure accountability. The organisation noted that Kyari’s earlier invitation to Obasanjo for a refinery tour aligned with the principles of transparency and good governance.
In the letter, SERAP Deputy Director Kolawole Oluwadare stated:
“The Auditor General’s findings reveal grave violations of public trust and raise concerns about mismanagement of public funds. These allegations undermine Nigeria’s economic development and deepen poverty for many citizens.”
Details from the Auditor General’s Report
The report alleges several irregularities in NNPC’s financial operations, including:
- N82 billion: Unaccounted funds meant for refinery rehabilitation, deducted from crude oil and gas sales between 2020 and 2021.
- N343 billion: Proceeds from domestic crude sales allegedly diverted for pipeline maintenance without approval.
- N204 billion: Deductions from oil royalties in 2021, unaccounted for.
- N83 billion: Missing miscellaneous income from joint ventures between 2016 and 2020.
- N3.7 billion: Paid to a company as a shortfall for PMS sales, with no clear justification.
- N28 billion and N15 billion: Outstanding bridging allowances and debts owed by oil marketers.
- $2 billion: Uncollected oil royalties from oil companies in 2021.
SERAP’s Ultimatum
The group has given the NNPC seven days to address these allegations or face legal action to compel compliance. SERAP stressed that the funds in question are crucial for the nation’s economic progress and should be accounted for transparently.
A Call for Accountability in the Oil Sector
The allegations against the NNPC highlight the need for improved governance and transparency in Nigeria’s oil and gas sector. As Nigeria grapples with economic challenges, ensuring accountability for public funds remains essential to rebuilding trust and fostering development.
