Call for Transparency and Accountability
The Socio-Economic Rights and Accountability Project (SERAP) has called on Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), to provide an explanation for the disappearance of over N825 billion and $2.5 billion, which were allocated for the rehabilitation of Nigerian refineries and other oil revenues, as highlighted in the 2021 annual report by the Auditor-General of the Federation.
Detailed Allegations and Actions Recommended
The report, published on November 27, 2024, detailed several financial discrepancies. SERAP has requested that Kyari identify and turn over to anti-corruption agencies, specifically the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC), individuals suspected of involvement in these fiscal irregularities.
Involving Former President in Transparency Efforts
SERAP commended Kyari’s initiative to invite former President Olusegun Obasanjo for a tour of the refineries, suggesting that this should also include oversight by the EFCC and ICPC to ensure transparency. They emphasized that such an invitation aligns with both the Nigerian Constitution and international anti-corruption obligations, refuting claims by Obasanjo of the invitation being disrespectful.
Urgent Actions Required
In a letter dated January 4, 2025, SERAP gives Kyari seven days to respond to their demands, threatening legal action if there’s no compliance. The letter stresses the severity of the allegations, which indicate a significant breach of public trust, contravening national and international anti-corruption laws.
Specific Instances of Financial Mismanagement
According to the Auditor-General’s findings:
- Over N82 billion was unaccounted for, intended for refinery rehabilitation, deducted from crude oil and gas sales between 2020 and 2021.
- More than N343 billion in proceeds from domestic crude sales was misused for pipeline maintenance.
- Around N83 billion from joint venture operations was withdrawn from a suspense account, potentially leading to unnecessary government borrowing.
- Over N204 billion in oil royalties for 2021 was not justified nor remitted to the appropriate regulatory body.
- Various other sums, including N3.7 billion to N28 billion, were cited as missing or unaccounted for, involving payments to companies, bridging allowances, and royalties.
Impact on National Development
These financial discrepancies have been described as undermining Nigeria’s economic development, exacerbating poverty, and limiting opportunities for citizens. SERAP’s call for accountability is framed as a necessary step to uphold constitutional mandates and combat corruption within public institutions.
