Probe worth ₦94.4 billion allegedly diverted, unremitted oil funds, SERAP tells Tinubu

The Socio-Economic Rights and Accountability Project (SERAP) has urged President Bola Tinubu “to direct the Midstream and Downstream Gas Infrastructure Fund (MDGIF), Abuja and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to immediately account for over ₦94.4 billion of public funds reportedly diverted, unremitted, unaccounted for or irregularly spent.”

These grave allegations were documented in the 2024 Annual Report (Volume 2) published by the Auditor General of the Federation on 7 August 2026. According to the Auditor General, the findings in the report covered the period between January and December 2023 and ended on 31 December 2024.

SERAP urges the President “to direct appropriate anti-corruption agencies to immediately investigate over ₦94.4 billion of public funds reportedly diverted, unremitted, unaccounted for or irregularly spent, and ensure prosecution of anyone responsible if there is sufficient admissible evidence, as well as the recovery and remittance of all affected public funds.”

SERAP also urged him “to direct MDGIF to submit and publish its audited financial reports for 2022, 2023 and 2024 and ensure that the reports are promptly forwarded to the Public Accounts Committee of the National Assembly, as recommended by the Auditor General.”

In a letter dated October 3, 2026 and signed by SERAP deputy director Kolawole Oluwadare, the organization said: “Anyone found responsible should be sanctioned and prosecuted appropriately if there is sufficient admissible evidence, regardless of status, position or institutional affiliation.”

SERAP said, “Every naira identified in the Auditor General’s report must be properly accounted for, and any oil funds found to have been diverted, misappropriated, improperly spent, or unaccounted for must be returned in full and remitted to the Department of Finance.”

The letter, in part, reads: “There is a legitimate public interest in ensuring justice and accountability for these important findings. These findings raise fundamental questions about the integrity, transparency and effectiveness of Nigeria’s management of oil revenues and gas flaring fines, involving billions of naira in public funds.”

“We would be grateful if the recommended steps are taken within seven days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP will consider appropriate legal and other lawful action to compel your government, MDGIF, NUPRC and other relevant authorities to comply with our request in the public interest.”

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“MDGIF and NUPRC should be directed to publish clear schedules indicating the amounts to be paid, collected, remitted and recovered, dates of transactions, responsible agencies or officials and the accounts into which the funds are paid.”

“These findings concern petroleum sector institutions and revenues for which the President, as Minister of Petroleum Resources, has special responsibility to ensure effective oversight, transparency and accountability.”

“The dual role of the President makes it imperative that the Auditor General’s findings regarding billions of naira in petroleum revenues and gas flaring fines be promptly investigated and that all public funds found to have been improperly withheld, diverted, misappropriated or unaccounted for be recovered.”

“MDGIF ‘failed to remit revenues of ₦26,549 billion (₦26,549,415,244.48) from sales of petroleum products between January 1, 2022 and December 31, 2024.’ The Auditor General expressed concern that ‘the money may have been diverted,’ and recommended returning and sending the money to the Treasury.”

“MDGIF also ‘failed to remit and report gas flaring fines of ₦12,480 billion (₦12,479,683,553.87) for 2023.’ The Auditor General raised concerns regarding the failure to collect and promptly remit net revenues generated by NUPRC from gas flaring into the MDGIF Account, as required by section 52(8) of the Petroleum Industry Act 2021.”

“The Auditor General is concerned that ‘failure to sanction gas flaring risks a lack of funding for environmental remediation and a potential civil crisis arising from the absence of remediation of environmental hazards.’”

“MDGIF also ‘engaged and paid consultants ₦3.518 billion (₦3,517,519,272.95) to recover fines for gas flaring without Presidential approval.’ According to the Auditor General, ‘there was no evidence of due process or due diligence in the assignment.’ The Auditor General expressed concern that the money may have been ‘misappropriated.’”

“NUPRC reportedly ‘failed to pay ₦38,610 billion (₦38,610,104,671.31) in gas flaring fines collected and due to MDGIF. The Auditor General expressed concern about ‘the risk of a lack of funding for environmental remediation and a civil crisis arising from the absence of remediation of environmental hazards.'”

“MDGIF also ‘failed to collect and account for ₦12,940 billion (₦12,940,311,072.81) in revenue from natural gas sales in 2024.’ The Auditor General expressed concern that the money may have been ‘misappropriated,’ and recommended returning and remitting the money to the Department of Finance.”

“MDGIF reportedly spent ₦261,852 million (₦261,851,719.18) to engage the Transaction Advisor, but the Auditor General found no evidence of performance of work by the Transaction Advisor and expressed concern that the money may have been ‘misappropriated.’”

“MDGIF also spent ₦65.8 million (₦65,800,000.00) to engage a Transaction Advisor in August 2024 without due process. The Auditor General stated that this action ‘may have breached public procurement procedures’ and recommended that MDGIF’s Executive Director take account of the expenditure.”

“Failure to properly account for billions of naira in petroleum products revenues, natural gas sales revenues, and gas flaring fines undermines public confidence in the management of Nigeria’s oil resources and creates serious risks that public funds intended for legitimate public purposes, including environmental improvement, may be lost, misused, or improperly withheld.”

“Failure to remit billions of naira in revenue and gas flaring fines, absence of supporting documentation for some expenditures, payments without proof of work undertaken, and procurement and consultancy arrangements without the necessary approvals or processes also raise serious concerns about the adequacy of existing safeguards for public funds.”

“The audit findings revealed repeated failures in basic financial and administrative controls, including failure to remit and account for public revenues, inadequate documentation, payments without evidence of work performed, procurement and consulting arrangements without the necessary legal approvals or processes, and failure to submit and publish audited financial reports.”

“Transparent investigations and accountability are especially important when the public funds in question include petroleum revenues and gas flaring fines that should be available for legitimate public purposes, including environmental improvement and protection of affected communities.”

“Failure to submit and publish audited financial reports for three consecutive financial years also undermines effective legislative oversight and public oversight of MDGIF’s financial management.”