The Nigerian National Petroleum Company Limited (NNPCL) is now facing intense scrutiny as watchdog organisation Socio-Economic Rights and Accountability Project (SERAP) demands immediate action and accountability over the World Bank‘s report about the missing N500 billion in oil revenue from Nigeria’s coffers.
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According to the World Bank’s disclosure last week, NNPCL generated N1.1 trillion in revenue from crude sales and other income between October and December 2024, yet only remitted N600 billion to the Federation Account. This leaves a staggering N500 billion unaccounted for, raising serious questions about financial management within Nigeria’s oil sector.
In a Freedom of Information request dated May 17, 2025, SERAP formally called on NNPCL’s Group Chief Executive Officer, Mr. Bayo Bashir Ojulari, to “account for and explain the whereabouts of the missing N500 billion” that failed to reach the Federation Account during the final quarter of 2024.
“There is a legitimate public interest in explaining the whereabouts of the alleged missing N500 billion oil money and grave violations of the Nigerian Constitution 1999 (as amended),” stated SERAP in its request, signed by Deputy Director Kolawole Oluwadare.
The organisation emphasised that “the country’s oil wealth ought to be used solely for the benefit of the Nigerian people and for the sake of the present and future generations.”
SERAP’s demands go beyond mere explanation. The organisation has called on Ojulari to “identify those suspected to be involved, surcharge them for the full amount involved, and hand them over to the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC) for investigation and prosecution.”
Additionally, SERAP urged the NNPCL chief to directly “invite the EFCC and ICPC to investigate the spending and whereabouts of the N500 billion” and ensure the full recovery and remittance of these funds to the Federation Account without further delay.
This revelation coincides with a recent call from the International Monetary Fund (IMF) for Nigeria to transfer subsidy removal savings to the national budget, adding another layer of international pressure on the oil company’s financial practices.
“Nigerians have the right to know why the NNPCL failed to remit the subsidy removal savings to the Federation Account and why the NNPCL is deliberately denying states and local governments their allocations from the Account, contrary to the provisions of the Nigerian Constitution 1999 (as amended),” SERAP asserted.
The organisation has given NNPCL seven days to respond before considering “appropriate legal actions to compel the NNPCL to comply with our requests in the public interest.”
This case appears to be part of a troubling pattern. SERAP noted that both the Auditor-General of the Federation and Nigeria Extractive Industries Transparency Initiative (NEITI) have “for many years documented reports of the disappearance of oil money from the NNPCL.”
The implications of the missing funds extend far beyond accounting discrepancies. “The missing oil revenue reflects a failure of NNPCL accountability more generally and is directly linked to the institution’s continuing failure to uphold the principles of transparency and accountability,” SERAP stated.
The consequences are tangible for ordinary Nigerians. “The missing oil revenue has also impeded Nigerians’ ability to enjoy their economic and social rights and denied them access to essential public goods and services, especially at the time of cost of living crisis in the country,” the organisation emphasised.
SERAP underscored that the revenue and other income were expected to be paid into the Federation Account and shared by all levels of government, but the NNPCL reportedly failed to fulfill this obligation.
The watchdog organisation’s legal basis for its demands is firmly rooted in Nigerian law. SERAP cited Section 15(5) of the Nigerian Constitution, which requires public institutions to abolish all corrupt practices and abuse of power, and Section 13, which imposes clear responsibility on the NNPCL to adhere to constitutional provisions.
Additionally, SERAP referenced a recent Supreme Court judgement that declared the Freedom of Information Act “is applicable and applies to the public records in the Federation,” including those kept by the NNPCL.
The organisation also highlighted Nigeria’s international obligations under the UN Convention against Corruption, particularly Articles 5 and 9, which impose legal obligations on the NNPCL to ensure proper management of public affairs and public funds.
“These commitments ought to be fully upheld and respected,” SERAP insisted.
The financial impact of this alleged mismanagement cannot be overstated. “The missing oil revenue has further damaged the already precarious economy and contributed to very high levels of deficit spending by the government,” SERAP noted.
The organisation argues that had the NNPCL properly accounted for and remitted the missing N500 billion to the Federation Account, “it is likely that more funds would have been allocated to the fulfilment of economic and social rights, such as increased spending on public goods and services.”
The stakes for Nigeria’s economic future are high. “Without the full recovery and remittance of the missing N500 billion of oil revenue, the dire economic situation may worsen and Nigerians will continue to be denied access to basic public goods and services,” SERAP warned.
This latest scandal adds to a growing list of corruption allegations that have plagued Nigeria’s oil sector for decades. “Despite the country’s enormous oil wealth, ordinary Nigerians have derived very little benefit from oil money, primarily because of widespread grand corruption and the entrenched culture of impunity of perpetrators,” SERAP observed.
The organisation concluded its request by noting that “combating the corruption epidemic in the oil sector would alleviate poverty, improve access of Nigerians to basic public goods and services, and enhance the ability of the government to meet its human rights and anti-corruption obligations.”
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