The Socio-Economic Rights and Accountability Project (SERAP) has urged Mele Kolo Kyari, Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), to provide detailed explanations regarding ₦825 billion and $2.5 billion allegedly unaccounted for in refinery rehabilitation funds and oil revenues.
The discrepancies, flagged in the 2021 annual report by the Auditor-General of the Federation, were made public on November 27, 2024. The findings include:
- ₦82.9 billion for refinery rehabilitation and repairs unaccounted for.
- ₦343.6 billion in proceeds from domestic crude sales not recorded.
- ₦83.6 billion in unaccounted miscellaneous income from joint venture operations.
- ₦204.8 billion in unjustified deductions from oil royalties.
- ₦3.7 billion shortfalls in PMS sales and ₦28.6 billion in outstanding bridging allowances.
- $2 billion and ₦48 billion in uncollected oil royalties from companies.
The Auditor-General’s report also noted that these discrepancies have impeded Nigeria’s economic growth, perpetuated poverty, and hampered the government’s ability to fund its budget effectively.
SERAP’s Call for Action
In a letter dated January 4, 2025, signed by Deputy Director Kolawole Oluwadare, SERAP called on Kyari to:
- Identify and Prosecute Culprits: Name those responsible for the missing funds and refer them to the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC).
- Invite Former President Obasanjo: Formally engage Olusegun Obasanjo to inspect refinery operations, as Kyari had publicly suggested.
- Include Anti-Corruption Agencies in Oversight: Ensure ICPC and EFCC monitor refinery activities and expenditures, particularly at the Port Harcourt and Warri refineries.
- Recover and Remit Funds: Recover all missing funds and return them to the Federation Account.
Ultimatum and Legal Threat
SERAP has given the NNPCL a seven-day ultimatum to address the highlighted issues or face legal action. The organization emphasized its readiness to pursue judicial remedies to ensure accountability.
The group condemned the recurring mismanagement of public funds, noting that the missing revenues and the failure to rehabilitate Nigeria’s refineries have left citizens in hardship, with fuel shortages and skyrocketing prices worsening economic challenges.
SERAP highlighted Section 15(5) of the Nigerian Constitution, which mandates public institutions to eliminate corruption. It also underscored Nigeria’s obligations under international anti-corruption treaties.
This call for accountability follows growing public frustration over the persistent lack of transparency and mismanagement within the oil sector, which remains a cornerstone of Nigeria’s economy.
