By Francis Ajuonuma
The Socio-Economic Rights and Accountability Project (SERAP) has called on President Bola Tinubu to order an immediate investigation into more than N94.4 billion in petroleum-sector funds allegedly diverted, unremitted, unaccounted for or irregularly spent.
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 2 Annual Report of the Auditor-General of the Federation, published on August 7, 2026.
According to SERAP, the Auditor-General’s report identified several financial irregularities involving the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The organisation urged Tinubu to direct appropriate anti-corruption agencies to investigate the findings, recover any public funds established to have been misappropriated and prosecute those responsible where sufficient evidence exists.
“Anyone found responsible should be appropriately sanctioned and prosecuted where sufficient admissible evidence is established, irrespective of status, position or institutional affiliation,” SERAP said.
It also asked the President to direct the MDGIF to submit and publish its audited financial statements for 2022, 2023 and 2024 and ensure that they are forwarded to the Public Accounts Committees of the National Assembly.
SERAP said the audit findings raised “fundamental questions about the integrity, transparency and effectiveness of the management of Nigeria’s petroleum revenues and gas-flaring penalties”.
Among the issues highlighted was the alleged failure by MDGIF to remit N26.549 billion in revenue from the sale of petroleum products between January 2022 and December 2024.
The Auditor-General reportedly expressed concern that the money “may have been diverted” and recommended its recovery and remittance to the Treasury.
SERAP also cited N12.48 billion in gas-flaring penalties allegedly not remitted or reported by MDGIF for 2023.
Similarly, NUPRC reportedly failed to remit N38.61 billion in gas-flaring penalties collected and due to MDGIF, according to the audit findings cited by SERAP.
Another N12.94 billion in revenue from the 2024 sale of natural gas was allegedly not collected and accounted for by MDGIF.
The audit further identified N3.52 billion paid to a consultant to recover gas-flaring penalties without presidential approval. The Auditor-General reportedly found no evidence of due process or due diligence in the engagement and expressed concern that the funds might have been diverted.
SERAP also cited N261.85 million allegedly paid to transaction advisers without evidence of work executed, as well as another N65.8 million engagement in August 2024 which it said was undertaken without due process.
The organisation called for the publication of a detailed schedule showing petroleum-sector funds due, collected, remitted and recovered, including transaction dates, responsible institutions or officials and destination accounts.
“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 said.
It added that the failure to remit gas-flaring penalties could affect funds available for environmental remediation and expose affected communities to further risks.
SERAP gave the government seven days from receipt or publication of its letter to act on the demands, warning that it would consider legal action and other lawful measures if no response was received.
The organisation said the findings warranted urgent action, particularly because the funds involved include petroleum revenues and gas-flaring penalties meant for lawful public purposes, including environmental remediation.
