Gives account of missing N825bn, $2.5bn for rehabilitation of refineries, others – SERAP tells NNPCL
The Socio-Economic Rights and Accountability Project has issued a seven-day ultimatum to the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mr. Mele Kyari, demanding a detailed account of N825 billion and $2.5 billion reportedly missing from funds earmarked for refinery rehabilitation and other oil revenues.
SERAP’s request, outlined in a letter dated January 4, 2025, and signed by its Deputy Director, Kolawole Oluwadare, follows revelations in the 2021 annual report by the Auditor-General of the Federation.
The report, published on November 27, 2024, alleged significant financial discrepancies involving NNPCL.
SERAP urged Kyari to identify and hand over individuals suspected of mismanaging or diverting the funds to the Economic and Financial Crimes Commission and the Independent Corrupt Practices and Other Related Offences Commission.
Additionally, SERAP proposed inviting former President Olusegun Obasanjo to inspect Nigeria’s refineries, alongside anti-graft agencies, to monitor refinery operations and expenditures, particularly on the Port Harcourt and Warri refineries.
“We welcome your invitation to former President Obasanjo to tour the refineries. However, we urge you to formalize this invitation and extend it to the EFCC and ICPC for the sake of transparency and accountability,” the letter read.
The Auditor-General’s report highlighted numerous financial irregularities within the NNPCL, including “N82.9 billion deducted from crude oil and gas sales between 2020 and 2021 for refinery rehabilitation, with no records of utilization.
“N343.6 billion** in proceeds from domestic crude sales allegedly diverted for pipeline maintenance and management costs.
“N83.6 billion in miscellaneous income from NNPC joint venture operations between 2016 and 2020, withdrawn from a Central Bank of Nigeria sinking fund account.
“N204.8 billion unjustifiably deducted from oil royalties in 2021.
“N28.6 billion in outstanding bridging allowances from NNPC retail operations.
“$2 billion in uncollected oil royalties from oil companies.”
The Auditor-General expressed concerns that these discrepancies might have hindered Nigeria’s economic development, exacerbated poverty, and created challenges in funding the national budget.
SERAP warned that failure by NNPCL to address these concerns within seven days would prompt legal action to compel compliance.
The organisation emphasised that Section 15(5) of the Nigerian Constitution mandates public institutions to eliminate corruption and abuse of power.
“The repeated disappearance of public funds under the NNPCL, as documented by the Auditor-General, has left Nigerians bearing the brunt of financial mismanagement while essential projects, like refinery rehabilitation, remain underfunded,” SERAP stated.
