The Socio-Economic Rights and Accountability Project (SERAP) has urged President Bola Tinubu to investigate a series of financial irregularities involving more than N94.4 billion in petroleum-sector revenues and expenditures. This call was made in a letter dated October 3, 2026, signed by SERAP's Deputy Director, Kolawole Oluwadare. The concerns were raised in the Auditor-General of the Federation's 2024 Volume II Annual Report, published on August 7, 2026.
The financial irregularities relate to the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). SERAP said the MDGIF failed to remit N26.549 billion generated from the sale of petroleum products between January 1, 2022, and December 31, 2024. The Auditor-General expressed concern that the amount might have been diverted and recommended its recovery and remittance to the Treasury.
SERAP also identified N12.480 billion in gas-flaring penalties for 2023, which the MDGIF failed to remit and report. Another N38.610 billion in gas-flaring penalties collected by NUPRC and due to the MDGIF was reportedly not remitted. The group said the Auditor-General warned that failure to remit the penalties could result in shortages of funds for environmental remediation and create risks associated with the continued non-remediation of environmental hazards.
The organisation raised questions about the handling of consultancy payments by the MDGIF. N3.518 billion was paid to a consultant for the recovery of 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 money might have been diverted. Additionally, the MDGIF was accused of failing to collect and account for N12.940 billion from natural gas sales in 2024.
SERAP pointed to expenditures for which the audit report allegedly found insufficient evidence of work performed or proper procurement procedures. N261.852 million was spent by the MDGIF to engage Transaction Advisors, but the Auditor-General found no evidence that the advisers executed any work. Another N65.8 million was spent on Transaction Advisors in August 2024 without due process.
The organisation demanded that the president order the publication of a detailed schedule showing funds due, amounts collected, remittances, and recoveries. SERAP also asked the MDGIF to publish its audited financial statements for 2022, 2023, and 2024 and forward them to the National Assembly's Public Accounts Committees. The group argued that transparency was particularly necessary because some of the disputed funds were gas-flaring penalties intended for environmental remediation.
SERAP gave the government seven days from the receipt or publication of its letter to act on the demands. If the government fails to comply, the organisation stated that it shall consider appropriate legal actions and other lawful measures to compel the government, the MDGIF, NUPRC, and other relevant authorities to comply with its requests in the public interest.
Key points
- President Bola Tinubu has been urged to investigate financial irregularities involving over N94.4 billion in petroleum-sector revenues and expenditures.
- The financial irregularities relate to the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
- SERAP demands transparency and accountability in the management of petroleum-sector revenues and public expenditure.
