SERAP To NNPCL: Account For Missing $2.04bn, N164bn Oil Revenues

Socio-Economic Rights and Accountability Project (SERAP) has given the Nigerian National Petroleum Corporation Limited (NNPCL) a seven-day ultimatum to account for missing oil revenues worth $2.04bn and N164bn.
SERAP, which made the demand in an open letter addressed to the group chief executive officer of the NNPCL, Mr Mele Kyari, stated that if its request is not complied with within the time frame, it will approach the court for adjudication.

The civil society organisation is also asking Kyari to name and shame those responsible for the disappeared oil money, surcharge them for the total amount involved, and hand them over to appropriate anti-corruption agencies, as provided for under paragraph 3112(ii) of the Financial Regulations 2009 and recommended by the Auditor-General.
In the letter dated February 17, 2024, and signed by its deputy director Kolawole Oluwadare, SERAP also urged Kyari to ensure the full recovery and remittance of the missing USD$2.04 billion and N164 billion into the Federation Account without further delay.

The organisation maintained that the missing oil revenues have further damaged the already precarious economy in the country and contributed to very high levels of deficit spending by the government.
It also stated that without the total recovery and remittance of the missing USD$2.04 billion and N164 billion oil revenues, the dire economic situation may worsen. Nigerians will continue to be denied access to essential public goods and services.
SERAP noted that the auditor-general has for many years documented reports of the disappearance of public funds from the NNPC and that Nigerians have continued to bear the brunt of these missing oil revenues.
It insisted that the alleged missing oil revenues reflect a failure of NNPCL accountability more generally and are directly linked to the institution’s continuing inability to uphold the principles of transparency and accountability.

The organisation said that if the NNPCL and its subsidiaries had accounted for and remitted the disappeared public funds into the Federation Account, it is likely that more funds would have been allocated to fulfil economic and social rights, such as increased spending on public goods and services.
SERAP further claimed that the missing oil revenues have also impeded Nigerians’ ability to enjoy their economic and social rights and denied them access to essential public goods and services, especially during a cost-of-living crisis in the country.
It stated, “explaining the whereabouts of the missing public funds, naming and shaming those suspected to be responsible and ensuring that alleged perpetrators are brought to justice and the full recovery of any lacking public funds would serve the public interest and end the impunity of perpetrators.
“Nigerians have the right to know the whereabouts of the disappeared oil money. Ensuring transparency and accountability in the management of oil revenues would advance the right of Nigerians to restitution, compensation and guarantee of non-repetition.
“According to the recently published 2020 audited report by the Auditor General of the Federation (AGF), the Nigerian National Petroleum Corporation (NNPC) failed to remit over USD$2 billion and N164 billion oil revenues into the Federation Account.

“The auditor-general fears that the money may have been diverted into private pockets, denying the government the funding to carry out its activities.
“The NNPCL reportedly failed and refused to remit N151,121,999,966. The NNPCL, without any justification, deducted the money from the oil royalties assessed for 2020 by the Department of Petroleum Resources (DPR), now the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

RELATED

Forget 2027, Presidency Tells Coalition’s ADC

4 hours ago

More Than 50% Of Medicines In Circulation Are Fake — Pharmacists

4 hours ago

“The NNPCL has failed to account for the missing public funds. The Auditor-General wants the money recovered and remitted into the Federation Account.
“The NNPCL also failed to remit USD$19,774,488.15 collected as government revenue into the Federation Account. The Auditor-General wants the NNPCL to account for the money, recover and send it into the Federation Account, and hand over those suspected to be involved to the ICPC and the EFCC.
“The Nigerian Petroleum Development Company (NPDC) Ltd also reportedly failed to account for USD$2,021,411,877.47 and N13,313,565,786.49 of royalties collected from crude oil and gas sales and gas flare.
“The auditor-general wants the public funds fully recovered and remitted into the Federation Account and for those suspected to be responsible for the missing public funds to be handed over to the ICPC and the EFCC.
“These grim allegations by the auditor-general suggest a grave violation of the public trust and the provisions of the Nigerian Constitution 1999 [as amended], national anti corruption laws, and the country’s obligations under the UN Convention against Corruption.
“The allegations have undermined the country’s economic development, trapped the majority of Nigerians in poverty, and deprived them of opportunities.

“SERAP is concerned that despite the country’s enormous oil wealth, ordinary Nigerians have derived minimal benefit from oil money primarily because of widespread grand corruption and the entrenched culture of impunity of perpetrators.
“Combating the corruption epidemic in the oil sector would alleviate poverty, improve access of Nigerians to essential public goods and services, and enhance the ability of the government to meet its human rights and anti-corruption obligations.

“SERAP notes that Section 15(5) of the Nigerian Constitution 1999 (as amended) requires public institutions to abolish all corrupt practices and abuse of power.
“Section 16(2) of the Nigerian Constitution further provides that ‘the material resources of the nation are harnessed and distributed as best as possible to serve the common good.
“Section 13 of the Nigerian Constitution 1999 [as amended] imposes clear responsibility on the NNPCL to conform to, observe and apply the provisions of Chapter 2 of the constitution.
“Paragraph 3112(ii) of the Financial Regulations 2009 provides that, ‘Where a public officer fails to account for government revenue, such officer shall be surcharged for the total amount involved and such officer shall be handed over to either the Economic and Financial Crimes Commission (EFCC) or the Independent Corrupt Practices and Other Related Offences Commission (ICPC).

“Nigeria has made legally binding commitments under the UN Convention against Corruption to ensure accountability in the management of public resources. Articles 5 and 9 of the UN Convention against Corruption also impose legal obligations on the NNPCL to ensure proper management of public affairs and public funds. These commitments ought to be fully upheld and respected,” SERAP stated.