SERAP demands probe into alleged N94.4bn petroleum funds mismanagement

The Socio-Economic Rights and Accountability Project (SERAP) has called on President Bola Tinubu to order an immediate investigation into the alleged diversion, non-remittance and irregular expenditure of more than ₦94.4 billion involving the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

SERAP made the demand in a letter dated October 3, 2026, signed by its Deputy Director, Kolawole Oluwadare, following findings contained in the 2024 (Volume 2) Annual Report of the Auditor-General of the Federation, published on August 7, 2026.

According to SERAP, the audit findings cover transactions and activities spanning periods between January 2023 and December 2024 and raise concerns over the management of petroleum-product revenues, natural-gas sales and gas-flaring penalties.

The organisation urged Tinubu to direct relevant anti-corruption agencies to investigate the allegations, recover any funds found to have been diverted or improperly spent, and prosecute those responsible where sufficient admissible evidence is established.

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

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

READ ALSO; SERAP gives CBN 7 days to explain N1.63tn, $6.23m election-linked payment

Among the specific audit findings cited by SERAP is an alleged failure by the MDGIF to remit ₦26.549 billion in revenue from the sale of petroleum products between January 2022 and December 2024. The Auditor-General reportedly expressed concern that the money may have been diverted and recommended its recovery and remittance to the Treasury.

The MDGIF was also accused of failing to remit and report ₦12.480 billion in gas-flaring penalties for 2023.

According to the Auditor-General’s findings cited by SERAP, NUPRC allegedly failed to remit ₦38.610 billion in gas-flaring penalties collected and due to the MDGIF.

SERAP said the Auditor-General warned that failure to remit gas-flaring penalties could create funding shortages for environmental remediation and increase the risk of civil tensions arising from unresolved environmental hazards.

The audit report also reportedly identified ₦12.940 billion in 2024 natural-gas sales revenue which the MDGIF allegedly failed to collect and account for.

In addition, SERAP cited an alleged payment of ₦3.518 billion by the MDGIF 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 raised concerns that the funds may have been diverted.

The audit findings further identified ₦261.852 million paid to Transaction Advisors, with the Auditor-General reportedly finding no evidence that the contracted work was executed.

Another N65.8 million was allegedly paid to Transaction Advisors in August 2024 without due process. The Auditor-General reportedly stated that the transaction may have violated public procurement procedures and recommended that the MDGIF Executive Director account for the expenditure.

SERAP said the findings point to broader weaknesses in financial controls, including failures to remit public revenues, inadequate supporting documentation, payments without evidence of work performed and procurement and consultancy arrangements allegedly undertaken without required approvals.

“These findings concern petroleum-sector institutions and revenues over which the President, as Minister of Petroleum Resources, has a particular responsibility to ensure effective oversight, transparency and accountability,” SERAP said.

The organisation argued that the issues were particularly significant because some of the funds involve gas-flaring penalties intended to support environmental remediation and address the impact of environmental hazards on affected communities.

SERAP further urged the government to ensure that every naira identified in the Auditor-General’s report is properly accounted for and that any funds found to have been diverted, misapplied, improperly withheld or otherwise unaccounted for are recovered and remitted to the Treasury.

It also warned that the failure to publish audited financial statements for three consecutive years undermines legislative oversight and public scrutiny of the MDGIF’s finances.

SERAP gave the government seven days from receipt or publication of the letter to act on its demands, warning that it would consider legal action and other lawful measures if the requested steps were not taken.

The organisation also invoked Nigeria’s constitutional obligations on accountability and anti-corruption, as well as commitments under the United Nations Convention against Corruption and the African Union Convention on Preventing and Combating Corruption.

It said those instruments require transparent management of public finances, effective public procurement systems, access to information and measures to investigate and sanction corruption.