The Socio-Economic Rights and Accountability Project (SERAP) has urged President Bola Tinubu to direct an immediate investigation into more than ₦94.4 billion in public funds allegedly diverted, unremitted, unaccounted for or irregularly spent within the petroleum sector.
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 II Annual Report of the Auditor-General of the Federation, published on August 7, 2026.
The organisation called on Tinubu to direct relevant anti-corruption agencies to investigate the financial irregularities identified in the report, recover affected funds and prosecute anyone found culpable where sufficient admissible evidence is established.
SERAP also asked the President to direct the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to provide a comprehensive account of petroleum revenues and gas-flaring penalties covered by the audit findings.
According to SERAP, the Auditor-General reported that the MDGIF failed to remit ₦26.549 billion in revenue from the sale of petroleum products between January 1, 2022 and December 31, 2024.
The Auditor-General reportedly expressed concern that the money may have been diverted and recommended its recovery and remittance to the Treasury.
The audit also identified ₦12.480 billion in gas-flaring penalties for 2023, which the MDGIF allegedly failed to remit and report.
SERAP said the Auditor-General raised concerns over the failure to collect and promptly remit net revenue generated by NUPRC from gas flaring into the MDGIF account, as required by Section 52(8) of the Petroleum Industry Act 2021.
A further ₦38.610 billion in gas-flaring penalties reportedly collected and due to the MDGIF was allegedly not remitted by NUPRC.
The Auditor-General, according to SERAP, warned that failure to remit gas-flaring penalties could create shortages of funds required for environmental remediation and increase the risk of crises arising from unaddressed environmental hazards.
SERAP also drew attention to the MDGIF’s reported payment of ₦3.518 billion to a consultant engaged to recover gas-flaring penalties.
According to the organisation, the Auditor-General found that the engagement was made without presidential approval and that there was no evidence of due process or due diligence in the appointment.
The Auditor-General consequently expressed concern that the money may have been diverted.
The MDGIF also reportedly spent ₦261.852 million on transaction advisers, but the audit found no evidence of work executed by the advisers and raised concerns that the money may have been diverted.
Another ₦65.8 million was reportedly spent on transaction advisers 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 payment.
SERAP said the audit findings reveal repeated weaknesses in basic financial and administrative controls, including failures to remit public revenues, inadequate documentation, payments without evidence of work performed and consultancy arrangements allegedly undertaken without the required approvals or due process.
The organisation also cited an alleged ₦12.940 billion in revenue from the 2024 sale of natural gas which the MDGIF reportedly failed to collect and account for.
According to SERAP, the Auditor-General expressed concern that the money may have been diverted and recommended its recovery and remittance to the Treasury.
SERAP said the combined findings raise serious questions about the management of Nigeria’s petroleum revenues and gas-flaring penalties, particularly because such funds are intended for lawful public purposes.
“Every naira identified in the Auditor-General’s report must be properly accounted for”, SERAP said, insisting that any oil funds found to have been diverted, misapplied, improperly spent or otherwise unaccounted for must be fully recovered and remitted to the Treasury.
The organisation further demanded that MDGIF and NUPRC 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 also asked Tinubu to direct MDGIF to submit and publish its audited financial statements for 2022, 2023 and 2024.
It said the statements should be promptly forwarded to the Public Accounts Committees of the National Assembly, in line with the Auditor-General’s recommendation.
According to SERAP, the failure to submit and publish audited financial statements for three consecutive years undermines legislative oversight and public scrutiny of the Fund’s financial management.
The organisation said the matter was particularly important given Tinubu’s position as both President and Minister of Petroleum Resources.
“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.
It urged the President to ensure that anyone found responsible is appropriately sanctioned and prosecuted where sufficient admissible evidence is established, “irrespective of status, position or institutional affiliation.”
SERAP said there was a legitimate public interest in ensuring accountability over the audit findings, arguing that the allegations involve billions of naira in petroleum revenues and gas-flaring penalties.
It warned that failure to properly account for such funds could undermine public confidence in the management of Nigeria’s petroleum resources and potentially deprive environmental remediation efforts of needed resources.
The organisation gave the Federal Government seven days from the receipt or publication of its letter to implement the requested measures.
It warned that if it does not receive a satisfactory response within the period, it will consider “appropriate legal actions and other lawful measures” to compel the government, MDGIF, NUPRC and other relevant authorities to act.
