By Ayomide Otitoju
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 address allegations of missing funds amounting to N825 billion and $2.5 billion. The funds were reportedly earmarked for refinery rehabilitation and other oil revenues, as highlighted in the 2021 annual report by the Auditor-General of the Federation.
In a letter dated January 4, 2025, signed by SERAP Deputy Director Kolawole Oluwadare, the organization urged Kyari to account for the missing funds, identify those responsible, and refer them to the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC).
SERAP also requested Kyari to formally invite former President Olusegun Obasanjo to inspect Nigeria’s refineries, extending the invitation to the EFCC and ICPC to oversee refinery operations and spending, including at the Port Harcourt and Warri refineries.
“Your public invitation to former President Obasanjo is neither disrespectful nor unwarranted,” SERAP stated. “We urge you to formalize the invitation and include anti-corruption agencies for transparency and accountability in refinery operations and expenditures.”
The Auditor-General’s 2021 report detailed numerous instances of unaccounted public funds by the NNPCL:
N82.9 billion for refinery rehabilitation deducted from crude oil and gas sales between 2020 and 2021.
N343.6 billion in proceeds from domestic crude sales allegedly diverted for pipeline maintenance costs.
N83.6 billion in miscellaneous income from NNPC joint venture operations withdrawn from a CBN/NNPC sinking fund account.
N204.8 billion in unjustified deductions from oil royalties.
N3.7 billion purportedly paid to a company as a shortfall on PMS sales.
N28.6 billion in outstanding bridging allowances from NNPC Retail.
N13.5 billion in bridging allowances owed by major oil marketers.
$29.6 million in royalties payable to the Department of Petroleum Resources.
Over $2 billion and N48 billion in uncollected oil royalties from oil companies.
The report raises concerns that these unaccounted funds may have undermined Nigeria’s economic development, exacerbated poverty, and led to funding difficulties for the 2021 budget.
SERAP emphasized that Section 15(5) of the Nigerian Constitution mandates public institutions to eliminate corruption. “For years, reports of missing public funds in the NNPCL have persisted, and Nigerians continue to suffer the consequences,” the group stated.
The organization demanded action within seven days, threatening legal measures to compel compliance if their recommendations are ignored.
