In a dramatic turn of events, the Socio-Economic Rights and Accountability Project (SERAP) has issued a stern demand to the Nigerian National Petroleum Corporation Limited (NNPCL), calling for accountability over the unaccounted funds of N825 billion and $2.5 billion. The funds, allegedly meant for refinery repairs and other operations, have raised eyebrows, as reported in the 2021 Annual Audit Report by the Auditor-General of the Federation. The group also pressed for further action by inviting anti-corruption agencies such as the Economic and Financial Crimes Commission (EFCC) and Independent Corrupt Practices and Other Related Offences Commission (ICPC) to investigate the matter.
Context of the Missing Funds
The 2021 report, published on 27 November 2024, reveals that the NNPCL could not account for over N825 billion, which was reportedly set aside for the repair of the country’s refineries, as well as an additional $2.5 billion that had been earmarked for other oil sector expenses. The report, which casts a cloud of suspicion over the transparency of the state-owned oil company, asserts that substantial sums were meant for crucial repairs at the Port Harcourt and Warri refineries, whose status has long been a contentious issue.
These grave financial concerns emerge at a time when Nigeria struggles with low oil refinery output, forcing the nation to depend heavily on fuel imports. Citizens continue to pay high fuel prices despite billions of naira invested into the sector, prompting a wave of criticism regarding the sector’s lack of progress.
SERAP’s Call for Action
In a letter dated 4 January 2025, Kolawole Oluwadare, the deputy director at SERAP, addressed Mele Kolo Kyari, the Group CEO of NNPCL, demanding transparency over the alleged missing funds. “We demand that you explain the whereabouts of the funds meant for refinery rehabilitation,” the letter states. SERAP is adamant that the NNPCL provide answers and also demand accountability from those found guilty of mismanaging or diverting the public funds.
Furthermore, the group urges the NNPCL to invite former President Olusegun Obasanjo for a tour of the country’s refineries. It stresses that, alongside the visit, anti-corruption bodies such as the EFCC and ICPC should be tasked with monitoring the operations to guarantee transparency in the refinery rehabilitation process.
Auditor-General’s Alarming Findings
The latest revelations from the Auditor-General’s office bring to light unsettling details of missing funds. According to the report, NNPCL failed to account for over N82 billion that was directly tied to refinery repairs and deductions from crude oil sales during the 2020 and 2021 periods. A deeper look at the document reveals concerns about large sums possibly being diverted from their original purpose.
The financial irregularities extend beyond refinery-related expenses. A staggering N343 billion allegedly disappeared as “proceeds from domestic crude sales” meant for pipeline maintenance. The Auditor-General, worried that the funds might have been “diverted,” called for their immediate recovery. Other discrepancies include unexplained withdrawals from multiple accounts, including sums over N83 billion from joint venture operations between NNPC and other companies, spanning from 2016 to 2020.
The NNPCL also failed to account for over N204 billion in unpaid oil royalties to the Department of Petroleum Resources (DPR), now the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), bringing the total number of funds “unaccounted for” to billions in naira and millions in foreign currency.
Continued Consequences of Financial Irregularities
With national economic development at risk, and reports of worsening poverty despite the billions supposedly allocated for infrastructure and social services, SERAP argues that these financial discrepancies impact the average Nigerian in severe ways. “The disappearance of these funds has directly harmed the economic progress of the nation and continues to deepen the suffering of the people,” the group writes in its letter.
Oluwadare concludes by urging Kyari to take immediate steps, including fully accounting for the missing sums and ensuring the prompt return of the funds to the treasury. “If the NNPCL fails to take corrective action within 7 days, we shall not hesitate to explore legal options to compel the company’s compliance,” SERAP warned.
Government Accountability under the Spotlight
The SERAP letter serves as a crucial reminder to public institutions of their responsibilities under Nigeria’s 1999 Constitution (as amended), which mandates that the government eradicate corruption and make transparent and effective use of public funds. “Public institutions must respect the rights and interests of citizens by avoiding corruption,” SERAP emphasized, holding Kyari and the NNPCL accountable.
While the group commended Kyari for extending an invitation to Obasanjo for the refinery tours, it strongly reiterated that the invitation must be broadened to include independent monitors such as EFCC and ICPC to ensure genuine scrutiny.
In the wider context, this development forms part of a troubling pattern that has marred the oil sector, particularly regarding transparency and accountability. The continuing scandal over missing funds has drawn international attention to Nigeria’s oil industry, which remains plagued by years of mismanagement and corruption, further undermining efforts for genuine reform.
A Call to Action for Nigerians
SERAP’s call for public transparency is one that is unlikely to be ignored. Nigerian citizens have long complained about the state of the country’s refineries and the reckless spending of oil revenues. With the country struggling to meet its energy needs while relying heavily on oil imports, the widespread diversion of public funds only heightens concerns of deep-seated corruption in the oil sector.
The SERAP initiative resonates as a beacon for change, focusing on the need for prompt action. Whether the NNPCL responds quickly enough to this public outcry remains to be seen, but the intense spotlight now cast on the corporation offers hope for greater scrutiny in years to come.
