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 how the funds budgeted for the repairs of the Nigerian refineries were spent.
SERAP is specifically asking the organisation to account for the whereabouts of the alleged missing funds totalling N825 billion and $2.5 billion earmarked for refinery repairs and other oil revenues, as highlighted in the 2021 annual report by the Auditor-General of the Federation.
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The civil society organisation, which made the demand in an open letter addressed to Kyari, also urged him to identify individuals suspected of being responsible for the disappearance of these oil revenues and to report them to the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC).
In the letter dated January 4, 2025, signed by its deputy director Kolawole Oluwadare, SERAP called on the NNPCL to formally engage former President Olusegun Obasanjo in touring Nigeria’s refineries and to invite both the EFCC and ICPC to monitor the operations and financial dealings related to the Port Harcourt and Warri refineries.
The organisation appreciated Kyari’s public invitation of former President Obasanjo to tour the Port Harcourt and Warri refineries.
It argued that NNPCL’s invitation was not disrespectful, contrary to the former president’s claims, as no one was above the law. They urged that the invitation be formalised and extended to the EFCC and ICPC for transparency and accountability.
SERAP further maintained that the invitation aligns with the 1998 Constitution (as amended) and the country’s international commitments concerning the roles of NNPCL and citizens in combating grand corruption.
The letter also highlighted grave allegations from the auditor-general indicating significant violations of public trust, the Nigerian Constitution, national anti-corruption laws, and international obligations.
According to the organisation, these allegations have reportedly impeded economic development, trapped many Nigerians in poverty, and deprived them of opportunities.
SERAP also insisted that the recommended actions be taken within seven days of receiving or publishing the letter. If no response is received, it will consider pursuing appropriate legal action to compel NNPCL to comply with these requests in the public interest.
According to the recently published 2021 audited report by the Auditor-General of the Federation, the NNPCL failed to account for over N825 billion and $2.5 billion intended for refinery repairs and other oil revenues.
In the report, the auditor-general expressed concern that this money may be missing and that the NNPCL did not account for over N82 billion (N82,951,595,510.47) designated for refinery rehabilitation and repairs. This sum was deducted from crude oil and gas sales between 2020 and 2021.
The auditor-general suggested that these funds may have been diverted and called for their recovery and remittance to the Federation Account. He further emphasised that the amounts due for the Federation Account should not be subjected to any deductions before the remittance of net funds.
The report also stated that the NNPCL failed to account for over N343 billion (N343,642,598,726.51) in proceeds from domestic crude sales. This amount, intended for pipeline maintenance and management costs, was previously deducted from gross domestic crude sales without justification.
Furthermore, the NNPCL is reported to have failed to account for over N83 billion (N83,659,813,739.99) in miscellaneous income from joint venture operations between 2016 and 2020, which was withdrawn from the Central Bank of Nigeria/NNPC sinking fund account.
The auditor-general raised concerns that this financial practice has forced the federation to borrow, emphasising the need to recover and remit these funds to the Treasury.
Additionally, the NNPCL is reported to have failed to account for over N204 billion (N204,853,744,047.39) from unjustified deductions in oil royalties for 2021, which was owed to the Department of Petroleum Resources, now known as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The auditor-general has expressed fears that this money may also have been diverted and called for its recovery and remittance to the treasury.
The report indicated that the NNPCL failed to account for over N3.7 billion (N3,748,581,281.27) allegedly paid to a company as a shortfall on the sales of Premium Motor Spirit (PMS) MT cargo, with the auditor-general fearing this amount may also be missing.
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