The Socio-Economic Rights and Accountability Project (SERAP) has issued a seven-day ultimatum to President Bola Tinubu to investigate and account for over N94.4 billion in petroleum revenues and gas-flaring penalties. In an open letter dated October 3, 2026, signed by its Deputy Director, Kolawole Oluwadare, SERAP alleged that the funds were diverted, left unremitted, or spent irregularly. The organisation demanded that President Tinubu order an investigation into the matter and recover any improperly withheld or diverted funds.
According to SERAP, the allegations are based on the Auditor-General of the Federation’s 2024 Annual Report (Volume 2), published on August 7, 2026. The audit findings cover January 2022 to December 2024. The report revealed that the Midstream and Downstream Gas Infrastructure Fund (MDGIF) failed to remit N26,549,415,244.48 from petroleum product sales between January 1, 2022, and December 31, 2024. Additionally, the MDGIF allegedly failed to remit and report N12.480 billion in gas-flaring penalties for 2023.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) was also accused of failing to collect and promptly remit net revenue from gas flaring to the MDGIF Account, as required by Section 52(8) of the Petroleum Industry Act 2021. NUPRC allegedly failed to remit N38,610,104,671.31 in gas-flaring penalties collected and due to the MDGIF. The Auditor-General warned that failure to remit the penalties could leave environmental remediation underfunded and contribute to civil crises stemming from unaddressed environmental hazards.
SERAP also alleged that the MDGIF paid N3.518 billion to a consultant to recover gas-flaring penalties without presidential approval. The Auditor-General found no evidence of due process or due diligence in the engagement and expressed concern that the funds may have been diverted. Furthermore, the MDGIF allegedly failed to collect and account for N12,940,311,072.81 from natural-gas sales in 2024.
The Auditor-General expressed concern that the money may have been diverted and recommended recovering it and remitting it to the Treasury. Additionally, SERAP cited N261,851,719.18 allegedly spent by the MDGIF on transaction advisers, with no evidence that the assignment was carried out. A further N65.8 million was allegedly spent on transaction advisers in August 2024 without due process.
The Auditor-General reportedly said the expenditure may have breached public procurement procedures and recommended that the MDGIF Executive Director account for it. SERAP maintained that the findings raised concerns about how the MDGIF managed petroleum revenues and gas-flaring penalties, especially funds meant for environmental remediation and protecting affected communities.
SERAP is specifically asking President Tinubu to direct the MDGIF and NUPRC to account for the funds and publish details of revenues due, collected, remitted, and recovered. The organisation also called for the recovery and remittance of any funds found to have been improperly withheld, diverted, or misapplied, and for those responsible to be prosecuted where sufficient admissible evidence exists.
Key points
- President Tinubu has been given seven days to investigate and account for over N94.4 billion in petroleum revenues and gas-flaring penalties.
- The allegations are based on the Auditor-General of the Federation’s 2024 Annual Report (Volume 2), published on August 7, 2026.
- SERAP demands the recovery and remittance of any funds found to have been improperly withheld, diverted, or misapplied.
