The Socio-Economic Rights and Accountability Project (SERAP) has called on 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. This demand was made in a letter dated October 3, 2026, signed by SERAP's Deputy Director, Kolawole Oluwadare. The request follows findings contained in the 2024 Volume II 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 in the petroleum sector. The Midstream and Downstream Gas Infrastructure Fund (MDGIF) allegedly 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 expressed concern that this money may have been diverted and recommended its recovery and remittance to the Treasury.
The audit also revealed that the MDGIF failed to remit ₦12.480 billion in gas-flaring penalties for 2023. Additionally, ₦38.610 billion in gas-flaring penalties collected by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) was allegedly not remitted to the MDGIF. The Auditor-General 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 without presidential approval or due process. The Auditor-General found no evidence of due diligence in the appointment and expressed concern that the money may have been diverted. Furthermore, the MDGIF spent ₦261.852 million on transaction advisers without evidence of work executed.
The organisation 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. The Auditor-General expressed concern that this money may have been diverted and recommended its recovery and remittance to the Treasury. These findings raise serious questions about the management of Nigeria's petroleum revenues and gas-flaring penalties.
SERAP urged President Tinubu to direct relevant anti-corruption agencies to investigate the financial irregularities identified in the report, recover affected funds and prosecute anyone found culpable. The organisation also asked the President to direct MDGIF and NUPRC to provide a comprehensive account of petroleum revenues and gas-flaring penalties covered by the audit findings.
SERAP has given the Federal Government seven days to act, warning that it may pursue legal action and other lawful measures if its demands for investigation, disclosure and recovery are not addressed. The organisation insisted that every naira identified in the Auditor-General's report must be properly accounted for and that any oil funds found to have been diverted must be fully recovered and remitted to the Treasury.
Key points
- SERAP demands investigation into ₦94.4bn in petroleum-sector funds allegedly diverted or unremitted.
- The funds include billions of naira in petroleum-product sales, gas-flaring penalties and natural-gas revenues.
- SERAP gives the Federal Government seven days to act or face legal action.
