The Socio-Economic Rights and Accountability Project (SERAP) has called on President Bola Tinubu to investigate over N94.4 billion in public funds reportedly diverted, unremitted, unaccounted for, or irregularly spent by the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). In a letter dated October 3, 2026, SERAP's Deputy Director, Kolawole Oluwadare, urged the President to ensure the recovery and remittance of the affected funds to the Treasury and the prosecution of anyone found culpable.
According to SERAP, the allegations appear in the Auditor-General of the Federation's 2024 (Volume 2) Annual Report, published on August 7, 2026. The report covered periods from January to December 2023 and ended on December 31, 2024. The organisation said the findings raised questions about the management of petroleum revenues and gas-flaring penalties. SERAP also urged the President to direct the MDGIF to submit and publish its audited financial statements for 2022, 2023, and 2024.
The MDGIF reportedly failed to remit N26.549 billion in revenue from the sale of petroleum products between January 1, 2022, and December 31, 2024. The Auditor-General expressed concern that the money may have been diverted and recommended its recovery and remittance to the Treasury. Additionally, the MDGIF failed to remit and report N12.480 billion in gas-flaring penalties for 2023. The Auditor-General raised concerns about the failure to collect and promptly remit the net revenue generated by NUPRC from gas flaring into the MDGIF Account.
SERAP also alleged that the NUPRC reportedly failed to remit N38.610 billion in gas-flaring penalties collected and due to the MDGIF. The Auditor-General expressed concerns about the risks of shortages of funds for environmental remediation and civil crisis arising from the non-remediation of environmental hazards. Furthermore, the MDGIF engaged and paid a consultant N3.518 billion to recover gas-flaring penalties without the approval of the President.
The organisation said the MDGIF also failed to collect and account for N12.940 billion in revenue from 2024 sales of natural gas. The Auditor-General expressed concern that the money may have been diverted and recommended its recovery and remittance to the Treasury. Moreover, the MDGIF reportedly spent N261.852 million to engage Transaction Advisors, but the Auditor-General found no evidence of job execution by the Transaction Advisors.
SERAP gave the government seven days to act on its demands, threatening legal action if the requests were not addressed. The organisation stated that there is a legitimate public interest in ensuring justice and accountability for these grave findings. The findings raise fundamental questions about the integrity, transparency, and effectiveness of the management of Nigeria's petroleum revenues and gas-flaring penalties.
SERAP urged President Tinubu to direct the appropriate anti-corruption agencies to promptly investigate the diverted funds and ensure the prosecution of anyone responsible. The organisation also called for the publication of details of the transactions and the officials and institutions responsible for the funds. As President and Minister of Petroleum Resources, Tinubu has a particular responsibility to ensure accountability in the sector.
Key points
- SERAP demands investigation into N94.4 billion in diverted oil revenue
- MDGIF and NUPRC allegedly diverted funds, failed to remit revenue
- SERAP gives government seven days to act, threatens legal action
