The Socio-Economic Rights and Accountability Project (SERAP) has petitioned President Bola Ahmed Tinubu to “set up a presidential panel of enquiry to promptly probe the grim allegations that US$2.1 billion and N3.1 trillion public funds of oil revenues and budgeted as fuel subsidy payments are missing and unaccounted for between 2016 and 2019, as documented by the Auditor-General of the Federation.” SERAP’s petition can be found here.
SERAP urged him to “name and shame anyone suspected to be responsible for the alleged widespread and systemic corruption in the use of oil revenues and the management of public funds budgeted as fuel subsidy, and to ensure their effective prosecution as well as the full recovery of any proceeds of crime.” SERAP urged him to “name and shame anyone suspected to be responsible for the alleged widespread and systemic corruption in the use of oil revenues and the management of public funds budgeted as fuel subsidy.”
SERAP also urged him “to promptly, thoroughly, independently, transparently, and effectively probe all fuel subsidy paid by successive governments since the return of democracy in 1999, and to use any recovered proceeds of crime as palliatives to address the impact of any subsidy removal on poor Nigerians.” Since the return of democracy in 1999, successive governments have paid fuel subsidies. SERAP urged him “to promptly, thoroughly, independently, transparently, and effectively probe all fuel subsidy paid.”
“There is a legitimate public interest in ensuring justice and accountability for these serious allegations,” the organization stated in the letter that was dated June 3, 2023, and signed by SERAP deputy director Kolawole Oluwadare. Without holding those responsible for violations of human rights accountable, there is no hope for economic expansion or long-term viability.
SERAP stated that “your government should urgently act to follow due process of law in any policy to remove fuel subsidy, ensure that suspected perpetrators of these crimes against Nigerians are brought to justice, and full recovery of any missing public funds.” SERAP also stated that “your government should urgently act to follow due process of law in any policy to remove fuel subsidy.”
Additionally, SERAP stated that “arbitrary removal of fuel subsidy without addressing outstanding accountability issues in the alleged mismanagement of oil revenues and fuel subsidy payments would amount to punishing poverty and further impoverishing the poor while letting high-profile officials and non-state actors get away with their crimes.”
The following was part of what was written in the letter: “Any removal of fuel subsidy should not be used as a ploy to keep the poor in poverty while those who are allegedly stealing oil revenues and fuel subsidy payments keep their ill-gotten wealth.”
“There are allegations of corruption in oil revenues and payments for fuel subsidies, which leads one to believe that the less fortunate have seen very little benefit from the utilization and administration of these revenues and payments.
“Poor and socio-economically vulnerable Nigerians should not be made to continue to pay the price for the stealing of the country’s oil wealth while state and non-state actors pocket public funds. This practice should be stopped immediately.”
“It would be greatly appreciated if the suggested actions were carried out within three days of the receipt of this letter and/or its publication. If by that time we have not heard from you, SERAP will take whatever legal action is necessary to compel your government to comply with our request in order to protect the public interest.
“The proposed panel should be headed by a retired justice from either the Supreme Court or the Court of Appeal, and its members should include individuals with proven professional records, people of the highest integrity, and people who are capable of acting impartially, independently, and transparently.
“In order to address the issues that have arisen as a result of the implementation of the fuel subsidy since 1999, a comprehensive strategy that places a high priority on accountability, as well as the complete recovery of lost crude oil and public funds, is required.
According to the audited reports that were conducted between 2016 and 2019 by the Auditor General of the Federation (AGF), the Nigerian National Petroleum Corporation (NNPC) did not make a payment into the Federation Account in the amount of N663,896,567,227.58. The Auditor General is concerned that the money might not have been accounted for.
According to reports, the Nigerian National Petroleum Corporation (NNPC) was unable to account for the allocation of crude oil to refineries in 2019. Without any documentation, 107 239 436 barrels of domestic crude oil were removed from storage and transported. The Auditor General is concerned that the crude oil, which has a market value of N55,891,009,960.63, may have been stolen.
In addition, the Nigerian National Petroleum Corporation (NNPC) violated Section 162(1) of the Nigerian Constitution 1999 [as amended] by failing to transfer the amounts of N1,955,354,671,268.66 and N55,157,702,848.74 into the Federation Account during the 2019 fiscal year. The Auditor General has serious concerns that the funds have been misappropriated.
“In addition, the Nigerian National Petroleum Corporation (NNPC) was unable to account for N4,572,844,962.25 worth of “domestic petrol receipts,” which resulted in a “reduction of the distributable revenue in the Federation account.” The money needs to be returned in order to satisfy the Auditor General.
“In addition, the NNPC was unable to account for 22,929.84 litres of PMS that were pumped from refineries in 2019, which had a total value of N7,056,137,180.00. The Auditor General is concerned that the PMS was possibly used for another purpose.
“In addition, the NNPC ‘illegally classified’ 239,800 barrels of crude oil with a total value of N5,498,045,220 as ‘crude oil losses.'” The Auditor General is concerned that someone may have taken the crude oil and used it for another purpose.
According to reports, the Department of Petroleum Resources (DPR) in 2019 did not transfer US$1,278,364,595.49 in revenue to the Federation Account. The NNPC subtracted the amount from the total amount of Oil and Gas Royalty that was calculated by the DPR.
“The DPR in 2019 also deducted N19,840,081.29 from payments made by contractors and consultants as’stamp duty’ payments; however, the DPR instantly paid back the money to the contractors and consultants instead of remitting it to the treasury.
In 2019, the DPR also paid a total of N137,225,973.35 to contractors and consultants for a variety of contracts and consultancies, but they did not deduct any stamp duty from these payments. The Auditor General is interested in getting the money back.
“The DPR also paid a total of N11,856,088,271.92 in salaries for 2019, but it failed to deduct a contribution of 1% Industrial Training Fund (ITF) totaling N118,560,882.72 from those salaries. The DPR in 2019 was also unsuccessful in transferring the year’s balance of US$35,738,342.95. The money needs to be recovered and then repaid, according to the Auditor General.
“Also in 2018, the DPR withdrew US$759,387,755.10 from the DPR Signature Bonus Account without providing any explanation for the withdrawal, rather than depositing the money into the Federation Account.
According to the records pertaining to subsidies, a total subsidy payment of N443,940,559,974.80 was made in 2016, despite the fact that this sum of money was not accounted for in the budget. These payments were made to settle outstanding commitments for the Petroleum Support Fund (PSF) for the year 2015.
“However, there was no payment in 2016,” the sentence begins. The only payments that were made in 2016 were delinquent payments from the years 2014 and 2015, as well as interest payments.
“The Auditor-General is concerned that the oil marketers who received the subsidy payments may not have been ‘eligible to draw from the Petroleum Support Fund because the Petroleum Products Pricing and Regulatory Authority (PPPRA) failed to provide any documentation on the payments. This is due to the fact that the PPPRA failed to provide any documentation on the subsidies.
“Payments of Interest and Foreign Exchange Differential on Subsidy totaling N39,141,210,181.74 were made from the Federation Account in 2016 to various Oil Marketers in the form of 26 separate transactions. However, no document was ever produced to support these payments.
“The NNPC made ‘zero profit’ and recorded ‘losses from its joint ventures in 2016,” according to the Financial Times. This runs counter to the expectations that should be fulfilled by joint ventures in the form of profits.
“In 2016, the Ministry of Petroleum Resources in Abuja paid the sum of N14,490,000.00 for the supply of three Nissan Almera Saloon vehicles 1.5 to the Ministry, despite the fact that the Ministry did not have the appropriate documentation. In accordance with the requirements of the Financial Regulations, the purchase of the vehicles was accomplished through direct procurement rather than through competitive bidding by a minimum of three different businesses. This contract did not undergo the normal process of advertising and receiving bids.
“Despite the fact that the Bureau of Public Procurement gave the go-ahead for the vehicles to cost N12,442,500.00, the Ministry of Transportation made an overpayment to the car company in the amount of N2,047,500.00.
“SERAP urges your government to prioritize investigating these allegations and ensuring accountability for the serious crimes committed against the people of Nigeria.
The right of Nigerians to restitution, compensation, and a guarantee that the offence will not be repeated can be advanced if prompt investigations are conducted, suspected perpetrators are named and shamed, and any missing public funds are recovered.
“The provisions of Chapter 2 of the Nigerian Constitution must be conformed to, observed, and applied in accordance with Section 13 of the Constitution of Nigeria, which clearly imposes this responsibility on your government. Your government is obligated to “eradicate all instances of corrupt practices and abuse of power” according to Section 15(5) of the Constitution.
“According to the first clause of Section 16 of the Constitution, it is the responsibility of your government to’secure the maximum welfare, freedom, and happiness of every citizen on the basis of social justice and equality of status and opportunity.’ According to the additional provisions of Section 16(2), “the material resources of the nation are harnessed and distributed as best as possible to serve the common good.”
“Both the United Nations Convention against Corruption and the African Union Convention on Preventing and Combating Corruption, to which Nigeria is a state party, obligate your government to effectively prevent and investigate the plundering of the country’s wealth and natural resources and hold public officials and non-state actors accountable for any violations.” “The United Nations Convention against Corruption and the African Union Convention on Preventing and Combating Corruption”
“More specifically, article 26 of the United Nations convention mandates that your government must ensure that cases of grand corruption are met with “effective, proportionate, and dissuasive sanctions,” which can include both criminal and non-criminal sanctions.
“The more general requirement stated in article 30, paragraph 1, that sanctions must take into account the gravity of the corruption allegations is supplemented by the provisions of article 26, which states:”
