Account For Missing N825bn, $2.5bn For Refinery Repairs, SERAP Tells NNPCL

The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, has been urged by the Socio-Economic Rights and Accountability Project (SERAP) to “account for and explain the whereabouts of the alleged missing N825bn and $2.5bn meant for’refinery rehabilitation’ and other oil revenues, as documented in the 2021 annual report by the Auditor-General of the Federation.”

The annual report was released on Thursday, November 27, 2024, according to SERAP.

Kyari was urged by SERAP “to identify those suspected to be responsible for the disappeared oil money and hand them over to the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC).”

Additionally, SERAP requested him “to extend your invitation to the EFCC and ICPC to monitor the operations of the refineries and any spending on them, including the Port Harcourt and Warri refineries, and to formally invite former President Olusegun Obasanjo to tour Nigeria’s refineries.”

Kolawole Oluwadare, the deputy director of SERAP, signed the letter, which was dated January 4, 2025. It stated: “We appreciate your prompt public invitation to former President Obasanjo to visit the refineries in Port Harcourt and Warri.

“We urge you to formally invite him and to extend your invitation to the EFCC and ICPC for the sake of transparency and accountability, even though it is obviously not ‘disrespectful,’ contrary to the former president’s claims, because no one is above the law.”

“Your public invitation to Obasanjo is well-founded and fully compliant with the letter and spirit of the Nigerian Constitution 1999 [as amended], as well as the nation’s international commitments regarding the NNPCL’s duties and the roles of citizens in preventing and combating grand corruption,” further stated SERAP.

Part of the letter stated: “The serious accusations made by the Auditor-General point to a serious breach of public confidence as well as the Nigerian Constitution, national anticorruption legislation, and the nation’s international commitments.”

“The accusations have also hampered the nation’s economic progress, kept most Nigerians in poverty, and denied them opportunities.”

“We would like it if the suggested actions were carried out within seven days of this letter being received and/or published. In the public interest, SERAP will take necessary legal action to force the NNPCL to comply with our requests if we don’t hear back from you before then.

“The Nigerian National Petroleum Corporation Limited (NNPCL) failed to account for over N825 billion and USD$2.5 billion of public funds meant for’refinery rehabilitation’ and repairs, as well as other oil revenues, according to the recently released 2021 audited report by the Auditor General of the Federation (AGF).”

“The money might be missing,” the Auditor-General worries.

Over N82 billion [N82,951,595,510.47] intended for “refinery rehabilitation and repairs” was purportedly not accounted for by the NNPCL. The’money was removed from the sale of crude oil and gas between 2020 and 2021’.”

The Auditor-General is concerned that the funds might be lost. He requests that the funds be retrieved and sent to the Federation Account. Additionally, he requests that the NNPCL “make sure that money owed to the Federation Account is not deducted before net remittance.”

Additionally, it has been revealed that the NNPCL neglected to account for more than N343 billion [N343,642,598,726.51] that “came from domestic crude sales.” The funds, intended for “maintenance and management costs of pipelines, were unilaterally taken out of the gross domestic crude sales.”

The Auditor-General is concerned that “the funds might have been misappropriated.” He desires that the funds be retrieved and sent to the Treasury. Additionally, he wants the NNPCL to turn over suspected participants to the EFCC and ICPC.

Over N83 billion [N83,659,813,739.99] in “miscellaneous income from the NNPC joint venture operations from 2016 to 2020” was also purportedly not declared by the NNPCL. The “money was taken out of the suspense account, the CBN/NNPC sinking fund account.”

This practice “has led the Federation to resort to borrowings,” which worries the Auditor-General. “The money recovered and remitted to the treasury” is what he wants.

Additionally, more than N204 billion [N204,853,744,047.39] was allegedly “unjustified deductions from the oil royalties for 2021” that the NNPCL neglected to account for. The Department of Petroleum Resources (DPR), which is now the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), was owed the money.

The Auditor-General is concerned that “the funds might have been misappropriated.” He desires that the funds be retrieved and sent to the Treasury.

Additionally, more than N3.7 billion [N3,748,581,281.27] was allegedly not accounted for by the NNPCL, “being money purportedly paid to a Company as a shortfall on sales of MT cargo of PMS.” The Auditor-General is concerned that the funds might be lost. He desires that the funds be retrieved and sent to the Treasury.

“The NNPCL is also accused of failing to account for more than N28 billion [N28,654,179,867.00], which is NNPC retail’s outstanding bridging allowance for 2021.”

“More than N13.5 billion [N13,5559,658,148.91] in unpaid bridging allowance claims from three significant oil marketers in 2021 were not taken into account by the NNPCL.”

This “may have resulted in difficulty in funding the 2021 budget,” according to the Auditor-General. He requests that “the money recovered from both the major oil marketers and the NNPC retail be remitted to the Federation Account.”

Additionally, more than N15 billion [N14,134,947,949.80 and N1,087,533,332.62] “being outstanding revenues from debts owed by twenty-six marketers for 2021” were allegedly not accounted for by the NNPCL. “The money recovered from the oil marketers and remitted to the Federation Account” is what the Auditor-General requests.

“The NNPCL reportedly failed to account for over $29.6 million [$29,648,970.36] ‘being outstanding royalties payable to the Department of Petroleum Resources CBN account.’ This “may have resulted in difficulty in funding the 2021 budget,” according to the Auditor-General. “He wants the money back.”

“Over $2 billion [$2,260,448,992.45] in “unpaid oil royalties from oil companies for 2021” and over N48 billion [N48,218,163,192.67] in “unpaid oil royalties from oil firms” were not collected by the NNPCL.

According to the Auditor-General, “the money may be missing.” This “may have resulted in difficulty in funding the 2021 budget,” he worries. “The funds recovered from the oil companies and transferred to the Federation Account” is what he wants.

According to SERAP, public institutions are required by Section 15(5) of the 1999 Nigerian Constitution (as amended) to eradicate all forms of corruption and power abuse.

For many years, the Auditor-General has kept track of reports that public cash have vanished from the NNPC. The majority of the missing public monies intended for refinery repair are still being felt by Nigerians.