SERAP gives NNPCL seven days to explain $2.04bn, N164bn missing oil income

Bisola David
Bisola David
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The Nigerian National Petroleum Company Limited has been contacted by the Socio-Economic Rights and Accountability Project to provide an explanation and account for the purported loss of $2.04 billion and N164 billion in oil profits over the course of seven days.

As noted in the most recent annual report issued by the Auditor-General of the Federation, SERAP urged the Group Chief Executive Officer of NNPCL, Mr Mele Kolo Kyari, to identify and publicly denounce those accountable for the missing oil funds in a statement dated February 17, 2024, which was also endorsed by its deputy director, Kolawole Oluwadare.

“The purportedly missing oil revenues are directly related to the institution’s ongoing failure to uphold the principles of transparency and accountability and reflect a failure of NNPCL accountability more generally.

“We would appreciate it if the suggested actions were implemented within seven days of this letter’s receipt and/or publication. A part of SERAP’s statement stated, “If we have not heard from you by then, SERAP shall consider appropriate legal actions to compel the NNPCL to comply with our requests in the public interest.”

SERAP urged the head of NNPCL to bring individuals responsible for the misappropriation of oil income to the appropriate authorities, in addition to guaranteeing the full recovery and restoration of the missing $2.04 billion and N164 billion into the federation account.

The Nigerian National Petroleum Corporation allegedly failed to return approximately $2 billion and N164 billion in oil earnings to the federation account, according to SERAP’s statement, which cited the 2020 audited report by the Auditor General of the Federation.

The AGF voiced worries that the funds might have been misused for private benefit, depriving the government of cash necessary to carry out its mandate.

Additionally, the Department of Petroleum Resources, currently known as the Nigerian Upstream Petroleum Regulatory Commission, assessed oil royalties, and the NNPC withheld N151,121,999,966 from those royalties without providing a legal reason. This information was revealed in the AGF’s report for 2020.

Additionally, the AGF emphasized that the NNPC has failed to transmit USD$19,774,488.15 in government revenue to the federation account and has not given a satisfactory explanation for the missing public funds.

Furthermore, the Nigerian Petroleum Development Company Ltd was found in the AGF report to have been unable to provide an explanation for the USD $2,021,411,877.47 and N13,313,565,786.49 in royalties that were obtained from the sale of gas and crude oil as well as gas flaring.

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