Account for missing N825b, $2.5b in NNPCL fund—SERAP tells Kyari

The Socio-Economic Rights and Accountability Project (SERAP) has called on Mele Kyari, the Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPCL), to account for N825 billion and $2.5 billion allegedly unaccounted for in the company’s operations.

The missing funds were reportedly meant for “refinery rehabilitation” and other oil revenues, as documented in the 2021 annual report by the Auditor-General of the Federation.

The demand comes in response to the 2021 report from the Auditor-General, which expressed concerns regarding the NNPCL’s handling of public funds.

In reaction, SERAP asked Kyari to explain the whereabouts of the funds meant for refinery rehabilitation and other oil revenues.

SERAP also demanded that Kyari identify and hand over those suspected of involvement to the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC).

Additionally, SERAP urged Kyari “to formally invite former President Olusegun Obasanjo to tour Nigeria’s refineries and to extend the 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.”

In a letter dated January 4, 2025, signed by Kolawole Oluwadare, deputy director of SERAP, the organisation stated:

“We welcome your timely public invitation to former President Obasanjo to tour the Port Harcourt and Warri refineries.

“While your invitation is clearly not ‘disrespectful,’ contrary to the claims by the former president because no one is above the law, we urge you to formally invite him and extend the invitation to the EFCC and ICPC for the sake of transparency and accountability.”

“Your public invitation to Obasanjo is well-justified and entirely consistent with the letter and spirit of the Nigerian Constitution 1999 (as amended) and the country’s international obligations on the roles of the NNPCL and citizens in preventing and combating grand corruption.”

The letter also highlighted that “the grim allegations by the Auditor-General suggest a grave violation of public trust and the provisions of the Nigerian Constitution, national anti-corruption laws, and the country’s international obligations.”

According to the letter, the allegations have undermined the country’s economic development, trapped the majority of Nigerians in poverty, and deprived them of opportunities.

SERAP added that it would be grateful if the recommended measures were taken within seven days of the receipt or publication of the letter. It noted that, in the public interest, the organisation would take legal action to compel the NNPCL to comply if Kyari does not respond.

“According to the recently published 2021 audited report by the Auditor-General of the Federation (AGF), the Nigerian National Petroleum Company Limited (NNPCL) failed to account for over N825 billion and $2.5 billion of public funds meant for refinery rehabilitation and repairs, and other oil revenues.”

“The Auditor-General fears the money may be missing.”

The report detailed several instances of unaccounted funds, including N82 billion meant for refinery rehabilitation, N343 billion from domestic crude sales, N83 billion from joint venture operations, N204 billion in oil royalty deductions, and $29.6 million in outstanding royalties.

“The Auditor-General fears the money may have been diverted and has called for its recovery and remittance to the Federation Account. He also urged the NNPCL to ensure that funds due to the Federation Account are not deducted before remittance.”

SERAP emphasized that Section 15(5) of the Nigerian Constitution 1999 (as amended) requires public institutions to abolish all corrupt practices and abuse of power.

“The Auditor-General has, for many years, documented reports of disappearing public funds from the NNPCL. Nigerians continue to bear the brunt of these missing public funds meant for refinery rehabilitation.”