SERAP Urges Tinubu to Probe N26 Billion Oil Sector Scandal
The Socio-Economic Rights and Accountability Project has called on President Bola Tinubu to launch an immediate investigation into the alleged mismanagement, diversion, and disappearance of over N26 billion in public funds from the Federal Ministry of Petroleum Resources and the Petroleum Technology Development Fund in 2021.
The allegations are detailed in the 2021 audited report released by the Office of the Auditor-General of the Federation on November 13, 2024.
In a letter dated February 1, 2025, and signed by its Deputy Director, Kolawole Oluwadare, SERAP urged Tinubu to direct the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, SAN, alongside relevant anti-corruption agencies, to investigate the matter.
The organisation also called for the prosecution of anyone found culpable and the recovery of the missing funds.
“Anyone suspected to be responsible should face prosecution as appropriate, if there is sufficient admissible evidence, and any missing public funds should be fully recovered and remitted to the treasury,” SERAP stated, adding that recovered funds should be channelled towards addressing the 2025 budget deficit and mitigating Nigeria’s growing debt crisis.
According to SERAP, the allegations reflect a gross violation of public trust and the Nigerian Constitution, as well as breaches of national and international anti-corruption obligations.
The Auditor-General’s report reveals that the PTDF paid over N25.6billion for contracts without any supporting documents. The report expressed concerns that the funds might have been diverted, recommending their recovery and remittance to the national treasury.
In addition to the N25.6billion, the PTDF reportedly failed to account for:
“N326million deposited in two banks without documentation.
“N107.6million allocated for the supply, installation, and commissioning of a library automation system at the Petroleum Training Institute (PTI), awarded without approval from the National Information Technology Development Agency (NITDA).
“N46.9million paid to three companies for services without evidence of execution, including payments made for services allegedly rendered before contract agreements were signed.
“N60.3million in unremitted stamp duty from capital expenditure contracts awarded in 2019 and 2020.
“N64million paid for store items that were never supplied.
“N41.3million disbursed for services not yet performed or goods not delivered, with payments lacking necessary supporting documents such as invoices and receipts.”
The Federal Ministry of Petroleum Resources was also implicated, with the report stating that:
“Over N25.5million in taxes collected from payments to contractors were not remitted to the appropriate authorities.
“N43.5million was irregularly paid for the replacement of a broken ceiling, with no justification provided.
“N74.7million in cash advances granted to ministry officers between March and December 2021 remain unaccounted for.
SERAP’s letter emphasised the urgent need for accountability, stating, “Poor Nigerians have continued to pay the price for widespread corruption in the oil sector. Despite the country’s enormous oil wealth, ordinary citizens have derived little benefit due to entrenched impunity and mismanagement.”
The organisation warned that failure to act within seven days of receiving the letter would prompt legal action to compel the government to comply with its demands.
“The country’s wealth ought to be used solely for the benefit of the Nigerian people, both present and future generations,” SERAP noted, stressing that tackling corruption in the oil sector would significantly alleviate Nigeria’s fiscal challenges.
Citing constitutional provisions, SERAP reminded the Tinubu administration of its obligation under Section 13 to uphold Chapter 2 of the Nigerian Constitution, which mandates the abolition of corrupt practices (Section 15(5)) and the promotion of social justice and equitable distribution of resources (Section 16).
The organisation also referenced Nigeria’s commitments under the UN Convention Against Corruption and the African Union Convention on Preventing and Combating Corruption, which require state parties to prevent, investigate, and prosecute corruption-related offenses.
