The Socio-Economic Rights and Accountability Project (SERAP) has urged President Bola Tinubu to take decisive action by directing the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, along with relevant anti-corruption agencies, to conduct a thorough investigation into allegations of missing, diverted, or stolen public funds exceeding N26 billion from the Petroleum Technology Development Fund (PTDF) and the Federal Ministry of Petroleum Resources. These allegations, if proven, point to significant financial mismanagement within critical government agencies responsible for Nigeria’s oil sector.
Reports indicate that these financial irregularities were exposed in the 2021 audited report released by the Office of the Auditor-General of the Federation on November 13, 2024. The findings have raised serious concerns about accountability and transparency within these government institutions. SERAP insists that those found culpable should face prosecution if there is sufficient admissible evidence, ensuring that those responsible for mismanaging public funds do not go unpunished.
In addition to seeking justice for the misappropriated funds, SERAP has also called for the full recovery of any missing public funds. The organization has recommended that these recovered funds be redirected toward addressing Nigeria’s persistent budget deficit and tackling the country’s mounting debt crisis. According to SERAP, ensuring financial accountability within the petroleum sector would greatly contribute to stabilizing the nation’s economy and improving public confidence in governance.
In a letter dated February 1, 2025, signed by its Deputy Director, Kolawole Oluwadare, SERAP underscored the importance of public interest in ensuring justice and transparency. The organization noted that allowing such a large sum of public funds to remain unaccounted for without consequence would undermine efforts to combat corruption in Nigeria. “Tackling corruption in the oil sector would significantly help in addressing the budget deficit and Nigeria’s debt challenges,” the letter stated.
Key Findings from the Auditor-General’s Report
The 2021 audit report detailed several cases of financial mismanagement, improper contract allocations, and unaccounted-for expenditures within the PTDF and the Federal Ministry of Petroleum Resources. Some of the most concerning financial irregularities include:
Petroleum Technology Development Fund (PTDF)
Over N25 billion was paid for contracts without any supporting documentation, raising serious concerns about possible diversion or fraudulent payments.N326 million was deposited into two bank accounts, but there were no records explaining the purpose or the intended use of these funds, making them potentially missing.
N107 million allocated for a library automation system at the Petroleum Training Institute (PTI) was unaccounted for. Moreover, the contract was awarded without proper authorization from the National Information Technology Development Agency (NITDA).
N46 million was paid to three different companies for services that had no verifiable proof of execution. One contractor even received payment before being officially engaged, violating standard procurement procedures.
N60 million in stamp duty payments from capital expenditure contracts awarded in 2019 and 2020 was never remitted, suggesting possible tax evasion or financial mismanagement.
N64 million was reportedly spent on store items that were never delivered, pointing to potential fraud in procurement.
N41 million was disbursed for services that were either not rendered or for goods that were never supplied, further raising concerns about the mismanagement of funds.
Federal Ministry of Petroleum Resources
N137 million from the capital vote was diverted to fund recurrent expenditures without obtaining necessary approvals from the National Assembly or the Minister of Finance.N232 million was paid to seven different companies for consultancy services linked to stakeholder engagement in the Niger Delta, yet there was no clear documentation explaining the purpose of the engagement, details of the companies involved, or any record of where the supposed engagements took place.
N25 million in taxes collected from contractor payments was not remitted to the relevant authorities, indicating possible tax fraud or mismanagement of government revenue.
N43 million was spent on ceiling repairs under irregular circumstances, with no competitive bidding process or clear justification for the cost.
N74 million in unretired cash advances was granted to government officers between March and December 2021, yet no evidence was provided to show that these funds were used for legitimate government purposes.
SERAP’s Call for Action
Given the severity of these findings, SERAP has called on President Tinubu to take immediate and concrete action within seven days. The organization has warned that if no steps are taken to investigate and recover the missing funds, it will pursue legal action to ensure compliance and accountability.
SERAP emphasized that Nigeria’s wealth should serve the public interest and not be siphoned by corrupt government officials or mismanaged by public institutions. The organization has called for stronger legal measures to prevent similar cases of financial mismanagement in the future. As part of its legal basis for the call to action, SERAP cited key constitutional provisions, including:
Section 15(5): This section of the Nigerian Constitution mandates the government to abolish corrupt practices and promote transparency in public administration.
Section 16: This provision requires that national resources be managed efficiently and used for the common good of all Nigerians, rather than being misappropriated by a few individuals.
In addition to domestic legal provisions, SERAP also referenced Nigeria’s international obligations under the United Nations Convention against Corruption and the African Union Convention on Preventing and Combating Corruption. These international treaties require signatory nations, including Nigeria, to conduct effective investigations and prosecutions of corruption cases, ensuring accountability for public officials found guilty of financial misconduct.
The letter concluded by highlighting Article 26 of the UN Convention, which mandates “effective, proportionate, and dissuasive sanctions” for acts of corruption. Additionally, it referenced Article 30, which stresses the importance of penalties that reflect the severity of corruption-related offenses. SERAP reiterated that ensuring accountability in this case would send a strong message that corruption will not be tolerated in Nigeria’s petroleum sector or any other government institution.
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