The Socio-Economic Rights and Accountability Project (SERAP) has called on Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), to explain the whereabouts of the alleged missing N825 billion and $2.5 billion allocated for refinery rehabilitation, as reported in the 2021 annual report by the Auditor-General of the Federation.
Published on Thursday, November 27, 2024, the report highlights the disappearance of these substantial funds meant for repairs and other oil-related expenses.
SERAP has urged Kyari to identify those responsible for the missing funds and ensure they are handed over to the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC). Furthermore, the organization has requested that Kyari formally invite former President Olusegun Obasanjo to visit Nigeria’s refineries, along with a call for the EFCC and ICPC to oversee the refineries’ operations and spending, particularly at the Port Harcourt and Warri facilities.
In a letter dated January 4, 2025, and signed by Kolawole Oluwadare, the Deputy Director of the Socio-Economic Rights and Accountability Project (SERAP), the organization expressed its support for the public invitation extended by Mele Kyari, the Group CEO of the Nigerian National Petroleum Company Limited (NNPCL), to former President Olusegun Obasanjo to tour the Port Harcourt and Warri refineries.
While acknowledging that Kyari’s invitation was not “disrespectful,” despite Obasanjo’s objections, SERAP urged Kyari to formally extend the invitation to Obasanjo, as well as to the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC), to ensure full transparency and accountability.
SERAP emphasized that the invitation was justified and aligned with the Nigerian Constitution, as well as the country’s international commitments concerning NNPCL’s obligations and the role of citizens in combating corruption.
The letter further pointed out that the allegations raised in the 2021 report by the Auditor-General, which documented over N825 billion and $2.5 billion in unaccounted-for funds meant for refinery rehabilitation and other oil revenues, raised serious concerns about a breach of public trust, violation of national anti-corruption laws, and economic harm to the nation.
SERAP called for action within seven days of receiving or publishing the letter, warning that failure to respond would compel the organization to take legal steps to ensure compliance with their demands in the public interest.
“The NNPCL reportedly failed to account for over N82 billion [N82,951,595,510.47] meant for ‘refinery rehabilitation and repairs.’ The ‘money was deducted from the sale of Crude Oil and Gas between 2020 and 2021’.”
“The Auditor-General fears the money may be missing. He wants the money recovered and remitted to the Federation Account. He also wants the NNPCL ‘to ensure that the amounts due for the Federation Account are not subjected to any deductions before remittance of net.’”
“The NNPCL also reportedly failed to account for over N343 billion [N343,642,598,726.51] ‘being proceeds from domestic crude sales.’ The ‘money, meant for ‘pipelines maintenance and management costs, was unilaterally deducted from the gross domestic crude sales.’”
“The Auditor-General fears ‘the money may have been diverted.’ He wants the money recovered and remitted to the treasury. He also wants the NNPCL to hand over those suspected to be involved to the EFCC and ICPC.”
“The NNPCL also reportedly failed to account for over N83 billion [N83,659,813,739.99] ‘being miscellaneous income from the NNPC joint venture operations from 2016 to 2020.’ The ‘money was withdrawn from the CBN/NNPC sinking fund account [a suspense account].’”
“The Auditor-General is concerned that this practice ‘has led the Federation to resort to borrowings.’ He wants ‘the money recovered and remitted to the treasury.’”
“The NNPCL also reportedly failed to account for over N204 billion [N204,853,744,047.39] ‘being unjustified deductions from the oil royalties for 2021.’ The ‘money was due to Department of Petroleum Resources (DPR) now Nigerian Upstream Petroleum Regulatory Commission (NUPRC).’”
“The Auditor-General fears ‘the money may have been diverted.’ He wants the money recovered and remitted to the treasury.”
“The NNPCL also reportedly failed to account for over N3.7 billion [N3,748,581,281.27] ‘being money purportedly paid to a Company as a shortfall on sales of MT cargo of PMS.’ The Auditor-General fears the money may be missing. He wants the money recovered and remitted to the treasury.”
“The NNPCL also reportedly failed to account for over N28 billion [N28,654,179,867.00] ‘being outstanding bridging allowance from NNPC retail for 2021.”
In its letter, SERAP highlighted several alarming discrepancies revealed in the 2021 report by the Auditor-General of the Federation regarding the Nigerian National Petroleum Company Limited (NNPCL). According to the Auditor-General:
- NNPCL failed to account for over N13.5 billion (N13,555,658,148.91) in outstanding bridging allowance claims from three major oil marketers in 2021. This failure has raised concerns about potential difficulties in funding the 2021 budget. The Auditor-General recommended that the money be recovered from the oil marketers and remitted to the Federation Account.
- The NNPCL also reportedly failed to account for over N15 billion (N14,134,947,949.80 and N1,087,533,332.62) in outstanding revenues from debts owed by 26 marketers. The Auditor-General called for the recovery of this amount and its remittance to the Federation Account.
- Furthermore, over $29.6 million ($29,648,970.36) in outstanding royalties payable to the Department of Petroleum Resources’ CBN account were not collected by NNPCL. The Auditor-General expressed concern that this failure may have contributed to difficulties in funding the 2021 budget and urged for the money to be recovered.
- NNPCL also failed to collect over $2 billion ($2,260,448,992.45) and over N48 billion (N48,218,163,192.67) in outstanding oil royalties from oil companies, prompting the Auditor-General to suggest that the money might be missing. The Auditor-General once again stressed that the money should be recovered from the oil companies and remitted to the Federation Account.
SERAP pointed out that Section 15(5) of the 1999 Nigerian Constitution (as amended) mandates public institutions to eradicate corruption and abuse of power. The organization noted that the Auditor-General has repeatedly documented instances of missing public funds from NNPC, and Nigerians continue to suffer due to these unaccounted-for funds, particularly those intended for refinery rehabilitation.
