SERAP urges Tinubu to probe alleged ₦94.4bn petroleum-sector irregularities

Crime Diary, News

ABUJA, Nigeria (NPA) — The Socio-Economic Rights and Accountability Project (SERAP) has urged President Bola Ahmed Tinubu to direct the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to account for more than ₦94.4 billion in public funds it said were reportedly diverted, unremitted, unaccounted for or irregularly spent.

SERAP said the allegations were documented in Volume II of the 2024 Annual Report of the Auditor-General of the Federation, published on Aug. 7, 2026, with findings covering various periods between January 2023 and Dec. 31, 2024.

In a statement on Sunday, the organisation called on Tinubu to direct relevant anti-corruption agencies to investigate the audit findings, prosecute anyone found responsible where sufficient admissible evidence exists, and recover and remit any affected public funds.

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SERAP also urged the MDGIF to submit and publish its audited financial statements for 2022, 2023 and 2024 and ensure that they are forwarded to the Public Accounts Committees of the National Assembly, as recommended by the Auditor-General.

In a letter dated Oct. 3 and signed by SERAP Deputy Director Kolawole Oluwadare, the organisation said anyone found responsible should be appropriately sanctioned and prosecuted, regardless of status, position or institutional affiliation.

SERAP said the MDGIF and NUPRC should also publish a clear schedule showing the amounts due, collected, remitted and recovered, the dates of transactions, the institutions or officials responsible and the accounts into which the funds were paid.

It gave the government seven days from receipt or publication of the letter to act, warning that it would consider legal and other lawful measures if its demands were not addressed.

Audit findings cited by SERAP

SERAP cited an Auditor-General finding that the MDGIF failed to remit ₦26.549 billion in revenue from the sale of petroleum products between Jan. 1, 2022, and Dec. 31, 2024.

The Auditor-General reportedly expressed concern that the money might have been diverted and recommended its recovery and remittance to the Treasury.

The organisation also cited ₦12.480 billion in gas-flaring penalties for 2023 which the MDGIF reportedly failed to remit and report.

According to SERAP, the Auditor-General raised concerns about the failure to collect and promptly remit net revenue generated by NUPRC from gas flaring into the MDGIF account, as required under Section 52(8) of the Petroleum Industry Act 2021.

The report reportedly warned that failure to remit gas-flaring penalties could create funding shortages for environmental remediation and increase the risk of civil unrest arising from unresolved environmental hazards.

SERAP further cited an MDGIF payment of ₦3.518 billion to a consultant for the recovery of gas-flaring penalties without presidential approval.

The Auditor-General reportedly found no evidence of due process or due diligence in the engagement and expressed concern that the money might have been diverted.

Another finding cited by SERAP involved ₦38.610 billion in gas-flaring penalties that NUPRC reportedly failed to remit to the MDGIF.

The Auditor-General again expressed concern over potential shortages of funds for environmental remediation and related risks.

SERAP also cited ₦12.940 billion in revenue from 2024 natural-gas sales which the MDGIF reportedly failed to collect and account for. The Auditor-General recommended recovery and remittance of the funds.

Other expenditures highlighted included ₦261.852 million paid to Transaction Advisors without evidence of work performed and ₦65.8 million paid to Transaction Advisors in August 2024 without due process.

According to SERAP, the Auditor-General recommended that the Executive Director of the MDGIF account for the latter expenditure and raised concerns that procurement procedures may have been violated.

MDGIF disputes aspects of audit findings

The MDGIF has, however, rejected the suggestion that the audit queries establish missing or unaccounted revenue, saying some discrepancies arose from timing and reconciliation issues in the multi-agency Federation Account remittance process.

The Fund also said it does not collect gas-flaring penalties, arguing that NUPRC is responsible for their collection under the statutory framework.

According to the MDGIF, gas-flaring penalties collected by NUPRC are remitted into the Federation Account, from which allocations are subsequently made to the Fund through the Federation Account Allocation Committee.

The Fund said it had submitted relevant Federation Account records to the Auditor-General and requested a review of the findings.

Accountability and public interest

SERAP said the audit findings raised questions about the integrity, transparency and effectiveness of the management of Nigeria’s petroleum revenues and gas-flaring penalties.

It said the failure to properly account for petroleum-product revenues, natural-gas sales and gas-flaring penalties could undermine public confidence in the management of the country’s petroleum resources and create risks for funds intended for lawful public purposes, including environmental remediation.

The organisation also said the absence of supporting documentation for some expenditures, payments without evidence of work performed, and procurement and consultancy arrangements allegedly undertaken without required approvals raised concerns about financial controls.

SERAP cited constitutional provisions requiring government to combat corruption and promote the welfare of citizens, as well as Nigeria’s obligations under the UN Convention against Corruption and the African Union Convention on Preventing and Combating Corruption.

It said those obligations require effective measures to prevent, investigate and sanction corruption and promote transparency and accountability in the management of public resources.