By Lizzy Chirkpi
The Socio-Economic Rights and Accountability Project (SERAP) has given President Bola Tinubu seven days to investigate alleged irregularities involving more than ₦94.4 billion in petroleum revenues and gas-flaring penalties reportedly unremitted, unaccounted for or irregularly spent by government agencies.
SERAP also demanded the recovery and remittance of all affected funds to the Treasury and the prosecution of officials found culpable.
The organisation made the demands in a letter dated October 3, 2026, signed by its Deputy Director, Kolawole Oluwadare, and addressed to President Tinubu.
SERAP said the allegations were contained in the Auditor-General of the Federation’s 2024 Annual Report, Volume 2, published on August 7, 2026.
According to the organisation, the audit findings raise serious concerns over the management of petroleum revenues and gas-flaring penalties by the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
SERAP urged the President “to direct the appropriate anti-corruption agencies to promptly investigate over N94.4 billion in public funds reportedly diverted, unremitted, unaccounted for or irregularly spent, and ensure the prosecution of anyone responsible where sufficient admissible evidence is established, as well as the recovery and remittance of all the affected public funds.”
It also demanded that the MDGIF submit and publish its audited financial statements for 2022, 2023 and 2024 and forward them to the National Assembly’s Public Accounts Committees, as recommended by the Auditor-General.
“Anyone found responsible should be appropriately sanctioned and prosecuted where sufficient admissible evidence is established, irrespective of status, position or institutional affiliation,” SERAP stated.
“Every naira identified in the Auditor-General’s report must be properly accounted for, and any oil funds found to have been diverted, misapplied, improperly spent or otherwise unaccounted for must be fully recovered and remitted to the Treasury.”
Audit Flags Billions
SERAP said the audit report identified several cases involving unremitted revenues, questionable expenditure and alleged breaches of procurement procedures.
It alleged that the MDGIF failed to remit ₦26.549 billion in revenue generated from the sale of petroleum products between January 1, 2022 and December 31, 2024.
The Auditor-General reportedly raised concerns that the money “may have been diverted” and recommended its recovery and remittance to the Treasury.
SERAP also alleged that NUPRC failed to remit ₦38.610 billion in gas-flaring penalties collected and due to the MDGIF.
It said the Auditor-General warned that the failure to remit the funds could create shortages for environmental remediation and contribute to potential civil unrest arising from unaddressed environmental hazards.
Another ₦12.480 billion in gas-flaring penalties for 2023 was allegedly neither remitted nor reported.
According to SERAP, the MDGIF also paid ₦3.518 billion 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 expressed concern that the money may have been “diverted.”
SERAP further alleged that the MDGIF failed to collect and account for ₦12.940 billion from 2024 natural gas sales, with the Auditor-General again raising concerns that the funds may have been diverted.
The audit findings also allegedly uncovered ₦261.852 million paid to Transaction Advisors without evidence of work performed.
SERAP said the MDGIF was further accused of spending ₦65.8 million to engage Transaction Advisors in August 2024 without due process.
The Auditor-General reportedly said the expenditure “may have violated public procurement procedures” and recommended that the Executive Director of the MDGIF account for the money.
SERAP said the pattern revealed by the audit report went beyond individual transactions, pointing to weaknesses in financial controls across the petroleum sector.
“The failure to properly account for billions of naira in petroleum-product revenues, natural-gas sales revenues and gas-flaring penalties undermines public confidence in the management of Nigeria’s petroleum resources and creates a serious risk that public funds intended for lawful public purposes, including environmental remediation, may have been lost, misapplied or improperly withheld,” it stated.
The organisation also demanded that the MDGIF and NUPRC publish detailed schedules showing the amounts due, collected, remitted and recovered, alongside transaction dates, responsible institutions or officials and the accounts into which the funds were paid.
“The MDGIF and NUPRC should be directed to publish a clear schedule showing the amounts due, collected, remitted and recovered, the dates of the transactions, the institutions or officials responsible and the accounts into which the funds were paid,” SERAP said.
It added that President Tinubu’s position as both President and Minister of Petroleum Resources placed a particular responsibility on him to ensure transparency and accountability in the sector.
“The President’s dual role makes it especially important that the Auditor-General’s findings concerning billions of naira in petroleum revenues and gas-flaring penalties are promptly investigated and that all public funds found to have been improperly withheld, diverted, misapplied or otherwise unaccounted for are recovered,” the organisation stated.
SERAP said the issue was particularly concerning because some of the funds involved gas-flaring penalties meant to support environmental remediation and protect communities affected by environmental damage.
“Transparent investigation and accountability are especially important where the public funds concerned include petroleum revenues and gas-flaring penalties that should be available for lawful public purposes, including environmental remediation and the protection of affected communities.”
The organisation also faulted the MDGIF for failing to publish audited financial statements for three consecutive years, saying the omission weakened legislative oversight and public scrutiny.
Threatens Legal Action
SERAP said the alleged failure to account for billions of naira, payments without evidence of work and procurement arrangements allegedly undertaken without required approvals or due process raised fundamental questions about the safeguards protecting public funds.
It said the findings showed “repeated failures of basic financial and administrative controls,” including failure to remit revenues, inadequate documentation and failure to submit and publish audited financial statements.
The organisation said its demands were anchored on Nigeria’s constitutional and international anti-corruption obligations, including provisions of the 1999 Constitution and the United Nations Convention against Corruption.
SERAP said Article 9 of the convention requires transparent and accountable systems of public procurement and public finances, while Article 10 promotes transparency in public administration.
“There is a legitimate public interest in ensuring justice and accountability for these grave findings,” the organisation stated.
“The findings raise fundamental questions about the integrity, transparency and effectiveness of the management of Nigeria’s petroleum revenues and gas-flaring penalties, involving billions of naira in public funds.”
SERAP gave the government seven days from the receipt or publication of its letter to act.
“We would be grateful if the recommended measures are taken within seven days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall consider appropriate legal actions and other lawful measures to compel your government, the MDGIF, NUPRC and other relevant authorities to comply with our requests in the public interest,” it stated.