Socio-Economic Rights and Accountability Project (SERAP) has urged Mr Mele Kolo Kyari, Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited to “promptly account for and explain the whereabouts of the alleged missing USD$2.04 billion and N164 billion oil revenues.”
SERAP said the allegations are documented in the latest
annual report recently published by the Auditor-General of the Federation.
SERAP urged Mr Kyari “to name and shame those responsible
for the disappeared oil money, surcharge them for the full amount involved, and
hand them over to appropriate anticorruption agencies, as provided for under
paragraph 3112(ii) of the Financial Regulations 2009, and recommended by the
Auditor-General.”
SERAP also urged him “to ensure the full recovery and remittance of the missing USD$2.04 billion and N164 billion into the Federation Account without further delay.”
In the letter dated 17 February 2024 and signed by SERAP
deputy director Kolawole Oluwadare, the organisation said, “The missing oil
revenues have further damaged the already precarious economy in the country and
contributed to very high levels of deficit spending by the government.”
SERAP said, “Without the full recovery and remittance of the
missing USD$2.04 billion and N164 billion oil revenues, the dire economic situation
may worsen and Nigerians will continue to be denied access to basic public
goods and services.”
According to SERAP, “the Auditor-General has for many years
documented reports of disappearance of public funds from the NNPC. Nigerians
continue to bear the brunt of these missing oil revenues.”
The letter, read in part: “The alleged missing oil revenues
reflect a failure of NNPCL accountability more generally and are directly
linked to the institution’s continuing failure to uphold the principles of transparency
and accountability.”
“We would be grateful if the recommended measures are taken
within 7 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 to
compel the NNPCL to comply with our requests in the public interest.”
“Had the NNPCL and its subsidiaries accounted for and
remitted the disappeared public funds into the Federation Account, it is likely
that more funds would have been allocated to the fulfillment of economic and
social rights, such as increased spending on public goods and services.”
“The missing oil revenues have also impeded Nigerians’
ability to enjoy their economic and social rights, and denied them access to
essential public goods and services, especially at the time of cost of living
crisis in the country.”
“Explaining the
whereabouts of the missing public funds, naming and shaming those suspected to
be responsible and ensuring that suspected perpetrators are brought to justice
and the full recovery of any missing public funds would serve the public
interest and end the impunity of perpetrators.”
“Nigerians have the right to know the whereabouts of the
disappeared oil money. Ensuring transparency and accountability in the
management of oil revenues would advance the right of Nigerians to restitution,
compensation and guarantee of non-repetition.”
“According to the recently published 2020 audited report by
the Auditor General of the Federation (AGF), the Nigerian National Petroleum
Corporation (NNPC) failed to remit over USD$2 billion and N164 billion oil
revenues into the Federation Account.”
“The Auditor-General fears that the money may have been
diverted into private pockets, denying the government the funding needed to
carry out its activities.”
“The NNPCL reportedly failed and/or refused to remit
N151,121,999,966. The NNPCL without any justification deducted the money from
the oil royalties assessed for 2020 by the Department of Petroleum Resources
(DPR) now Nigerian Upstream Petroleum Regulatory Commission (NUPRC).”
“The NNPCL has failed to account for the missing public
funds. The Auditor-General wants the money recovered and remitted into the
Federation Account.”
“The NNPCL also failed to remit USD$19,774,488.15 collected
as government revenue into the Federation Account. The Auditor-General wants
the NNPCL to account for the money, recover and remit it into the Federation
Account, and to hand over those suspected to be involved to the ICPC and the
EFCC.”
“The Nigerian Petroleum Development Company (NPDC) Ltd also
reportedly failed to account for USD$2,021,411,877.47 and N13,313,565,786.49 of
royalties collected from crude oil and gas sales and gas flare.”
“The Auditor-General wants the public funds fully recovered
and remitted into the Federation Account and for those suspected to be
responsible for the missing public funds to be handed over to the ICPC and the
EFCC.”
“These grim allegations by the Auditor-General suggest a
grave violation of the public trust and the provisions of the Nigerian
Constitution 1999 [as amended], national anticorruption laws, and the country’s
obligations under the UN Convention against Corruption.”
“The allegations have undermined the economic development of
the country, trapped the majority of Nigerians in poverty and deprived them of
opportunities.”
“SERAP is concerned that despite the country’s enormous oil
wealth, ordinary Nigerians have derived very little benefit from oil money
primarily because of widespread grand corruption, and the entrenched culture of
impunity of perpetrators.”
“Combating the corruption epidemic in the oil sector would
alleviate poverty, improve access of Nigerians to basic public goods and
services, and enhance the ability of the government to meet its human rights
and anti-corruption obligations.”
“SERAP notes that Section 15(5) of the Nigerian Constitution
1999 (as amended) requires public institutions to abolish all corrupt practices
and abuse of power.”
“Section 16(2) of the Nigerian Constitution further provides
that, ‘the material resources of the nation are harnessed and distributed as
best as possible to serve the common good.’”
“Section 13 of the Nigerian Constitution 1999 [as amended]
imposes clear responsibility on the NNPCL to conform to, observe and apply the
provisions of Chapter 2 of the constitution.”
“Paragraph 3112(ii) of the he Financial Regulations 2009
provides that, ‘Where a public officer fails to account for government revenue,
such officer shall be surcharged for the full amount involved and such officer
shall be handled over to either the Economic and Financial Crimes Commission
(EFCC) or the Independent Corrupt Practices and Other Related Offences
Commission (ICPC).’”
“Nigeria has made legally binding commitments under the UN
Convention against Corruption to ensure accountability in the management of
public resources. Articles 5 and 9 of the UN Convention against Corruption also
impose legal obligations on the NNPCL to ensure proper management of public
affairs and public funds. These commitments ought to be fully upheld and
respected.”
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