morganabLE politics/governance
SERAP urged Tinubu to ensure that all those found culpable are prosecuted and that the affected funds are fully recovered and remitted to the national treasury.
KaNo —
The Socio-Economic Rights and Accountability Project has urged President Bola Tinubu to launch an urgent investigation into the alleged diversion and mismanagement of over N94.4bn in oil-related revenues, citing findings from the latest audit of federal accounts.
In a letter dated October 3, 2026, signed by its Deputy Director, Kolawole Oluwadare, the civic group called on the President to direct anti-corruption agencies to probe the funds reportedly unremitted, unaccounted for, or irregularly spent by the Midstream and Downstream Gas Infrastructure Fund and the Nigerian Upstream Petroleum Regulatory Commission.
The letter, made available to journalists, was based on findings contained in the Auditor-General of the Federation’s 2024 (Volume 2) Annual Report, published on August 7, 2026.
According to the organisation, the report covered financial activities between January 2023 and December 2024 and raised serious concerns about transparency and accountability in the petroleum sector.
SERAP urged Tinubu to ensure that all those found culpable are prosecuted and that the affected funds are fully recovered and remitted to the national treasury.
It stressed that decisive action would reinforce public trust and strengthen financial governance in the oil and gas industry.
The group said, “There is a legitimate public interest in ensuring justice and accountability for these grave findings. The allegations raise fundamental questions about the integrity, transparency and effectiveness of the management of Nigeria’s petroleum revenues and gas-flaring penalties.”
It also gave the Federal Government a seven-day ultimatum to act on its recommendations or face legal action aimed at compelling compliance.
Among its demands, SERAP called on the President to direct the MDGIF to publish its audited financial statements for 2022, 2023 and 2024 and submit them to the Public Accounts Committees of the National Assembly, in line with the Auditor-General’s recommendations.
It also asked that details of all relevant transactions, including amounts due, collected, remitted, and recovered, be made public.
According to the organisation, such disclosures should include the dates of transactions, the institutions and officials involved, and the accounts into which the funds were paid.
It argued that transparency in these areas would help clarify discrepancies and prevent future financial irregularities.
SERAP noted that Tinubu’s dual role as President and Minister of Petroleum Resources placed a heightened responsibility on him to ensure effective oversight of 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,” the letter stated.
The audit report cited by SERAP identified multiple instances of alleged financial infractions involving the MDGIF. One of the major concerns was the failure of the fund to remit N26.549bn generated from the sale of petroleum products between January 2022 and December 2024.
The Auditor-General warned that the funds might have been diverted and recommended their recovery.
In addition, the MDGIF was said to have failed to remit and report N12.480bn in gas-flaring penalties for 2023.
The report raised concerns about the implications of such lapses, noting that unremitted penalties could hinder environmental remediation efforts and increase the risk of civil unrest in affected communities.
The situation was compounded by allegations that the MDGIF engaged a consultant to recover gas-flaring penalties at a cost of N3.518bn without obtaining presidential approval or following due process.
The Auditor-General reportedly found no evidence of due diligence in the engagement and expressed concern that the funds might have been diverted.
Further findings indicated that the Nigerian Upstream Petroleum Regulatory Commission failed to remit N38.610bn in gas-flaring penalties collected on behalf of the MDGIF.
The audit warned that such failures could lead to funding shortages for environmental remediation and exacerbate tensions in oil-producing communities.
SERAP also highlighted that the MDGIF failed to collect and account for N12.940bn from 2024 natural gas sales, another development flagged by the Auditor-General as potentially indicative of diversion or weak financial controls.
Beyond revenue-related issues, the report raised concerns over questionable expenditures. The MDGIF reportedly spent N261.852m on Transaction Advisors without evidence of work done.
Another N65.8m was also spent on similar services without due process, in what the Auditor-General suggested could be a violation of public procurement procedures.
The organisation argued that the pattern of alleged irregularities pointed to systemic weaknesses in financial management within 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,” SERAP stated.
It warned that such lapses could result in the loss or misapplication of funds meant for critical public purposes, including environmental protection and community development in oil-producing areas.
The group emphasised that ensuring accountability in the management of oil revenues was essential not only for economic stability but also for social justice, particularly in regions affected by oil exploration and gas flaring.
With growing scrutiny over public finances and increasing demand for transparency, stakeholders say the government’s response to SERAP’s demands will be closely watched as a test of its commitment to accountability and reform. There is still no official response from the Presidency or the agencies named in the audit
Analysts say the outcome of any investigation could have far-reaching implications for governance in Nigeria’s oil sector.
