SERAP Demands Tinubu Probe Into N94.4bn Petroleum Funds Flagged by Auditor-General

The Socio-Economic Rights and Accountability Project (SERAP) has called on President Bola Tinubu to order an immediate investigation into more than ?94.4 billion in petroleum-sector funds allegedly unremitted, unaccounted for, diverted or irregularly spent by the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

SERAP made the demand in a letter dated October 3, 2026, signed by its Deputy Director, Kolawole Oluwadare, and addressed to President Tinubu.

The organisation said the allegations were contained in the 2024 Volume 2 Annual Report of the Auditor-General of the Federation, published on August 7, 2026.

According to SERAP, the audit examined transactions covering various periods between January 2023 and December 2024 and raised concerns about the management of petroleum revenues, natural-gas proceeds and gas-flaring penalties running into billions of naira.

SERAP is asking the President to refer the findings to the appropriate anti-corruption agencies for investigation and prosecution of anyone found culpable, provided sufficient admissible evidence is established.

It is also demanding the full recovery and remittance to the Treasury of every amount determined to have been diverted, misapplied, improperly spent or otherwise left unaccounted for.

N26.5bn Petroleum Revenue Allegedly Not Remitted

One of the largest amounts highlighted by SERAP is ?26.549 billion, which the organisation said the Auditor-General found had allegedly not been remitted by the MDGIF from the sale of petroleum products between January 1, 2022 and December 31, 2024.

SERAP said the Auditor-General expressed concern that the money “may have been diverted” and recommended its recovery and remittance to the Treasury.

The organisation is now asking the government to establish what happened to the funds, identify those responsible and determine whether any criminal or administrative breaches occurred.

Billions in Gas-Flare Penalties Under Scrutiny

SERAP also drew attention to ?12.480 billion in gas-flaring penalties for 2023, which it said the MDGIF allegedly failed to remit and properly report.

According to SERAP, the Auditor-General questioned the failure to collect and promptly transfer net revenues generated by NUPRC from gas-flaring penalties into the MDGIF account, as required under Section 52(8) of the Petroleum Industry Act, 2021.

The Auditor-General reportedly warned that failure to remit the penalties could leave insufficient resources for environmental remediation and potentially worsen tensions in communities affected by environmental damage.

SERAP said the issue is particularly significant because gas flaring penalties are intended to serve as part of the financial mechanism for addressing environmental consequences associated with petroleum operations.

?3.5bn Consultant Payment Questioned

The audit findings also allegedly identified a ?3.518 billion payment by the MDGIF to a consultant for the recovery of gas flaring penalties, which SERAP said was made without presidential approval.

According to the organisation, the Auditor-General found no evidence of adequate due process or due diligence in the engagement.

The audit reportedly raised concerns that the funds “may have been diverted.”

SERAP is asking the government to establish why the consultant was engaged, who authorised the payment, what services were provided and whether the expenditure complied with applicable financial and procurement rules.

NUPRC Accused of Failing to Remit N38.6bn

The NUPRC also came under scrutiny in the audit findings cited by SERAP.

The organisation said the commission allegedly failed to remit ?38.610 billion in gas flaring penalties collected and due to the MDGIF.

SERAP said the Auditor-General again raised concerns about the potential consequences of the failure to transfer the funds, particularly for environmental remediation.

The organisation is demanding that the government establish whether the funds remain with NUPRC, determine why they were not remitted and recover any money found to have been improperly withheld or handled.

N12.94bn Natural Gas Revenue Also Flagged

SERAP further cited ?12.940 billion in natural gas sales revenue that it said the MDGIF allegedly failed to collect and account for in 2024.

The Auditor-General reportedly expressed concern that the funds may have been diverted and recommended their recovery and remittance to the Treasury.

Taken together, SERAP said the findings point to significant gaps in the financial controls governing Nigeria’s petroleum sector revenues.

Consultancy Payments Raise Procurement Questions

The audit findings cited by SERAP also flagged other expenditures by the MDGIF.

According to the organisation, ?261.852 million was allegedly paid to Transaction Advisors despite the absence of evidence demonstrating that the consultants had carried out the work for which they were engaged.

The Auditor-General reportedly expressed concern that the funds may have been diverted.

A separate ?65.8 million payment was allegedly made by the MDGIF to Transaction Advisors in August 2024 without due process.

SERAP said the Auditor-General found that the transaction “may have violated public procurement procedures” and recommended that the Executive Director of the MDGIF account for the expenditure.

SERAP Questions Financial Controls

For SERAP, the individual findings point to a broader institutional problem rather than isolated accounting discrepancies.

“The failure to properly account for billions of naira in petroleum-product revenues, natural gas sales revenues and gas-flaring penalties undermines public confidence in the management of Nigeria’s petroleum resources,” the organisation said.

SERAP argued that failure to remit or properly account for the funds creates the risk that money intended for lawful public purposes including environmental remediation and the protection of affected communities could be lost, misapplied or improperly withheld.

The organisation wants the government to publish a detailed schedule showing how much was due, how much was collected, how much was remitted and what has been recovered.

It is also asking for transaction dates, the institutions or officials responsible and the accounts into which the relevant funds were paid.

Demand for MDGIF Audited Accounts

SERAP has further asked President Tinubu to direct the MDGIF to submit and publish its audited financial statements for 2022, 2023 and 2024 and ensure that the documents are forwarded to the Public Accounts Committees of the National Assembly.

“The audit findings reveal repeated failures of basic financial and administrative controls, including the failure to remit and account for public revenues, inadequate documentation, payments without evidence of work performed, procurement and consultancy arrangements without required approvals or due process, and failures to submit and publish audited financial statements,” SERAP said.

The organisation said the failure to publish audited accounts for three consecutive financial years has weakened legislative oversight and limited the ability of citizens to scrutinise the fund’s financial management.

Tinubu’s Dual Role Raises Oversight Questions

SERAP said the matter requires particular attention because Tinubu also serves as Nigeria’s Minister of Petroleum Resources.

“These findings concern petroleum-sector institutions and revenues over which the President, as Minister of Petroleum Resources, has a particular responsibility to ensure effective oversight, transparency and accountability,” the organisation said.

SERAP argued that the President’s dual role makes it particularly important for the Auditor-General’s findings concerning petroleum revenues and gas flaring penalties to be subjected to prompt investigation.

The organisation called for anyone found responsible to face appropriate sanctions and prosecution where sufficient admissible evidence exists, regardless of position or institutional affiliation.

“Every naira identified in the Auditor-General’s report must be properly accounted for,” SERAP said, insisting that any petroleum funds found to have been diverted, misapplied, improperly spent or otherwise unaccounted for should be recovered and returned to the Treasury.

Seven Day Deadline

SERAP said its demands are grounded in Nigeria’s constitutional obligations under Sections 13, 14 and 15(5) of the 1999 Constitution, as well as the country’s commitments under the United Nations Convention Against Corruption and the African Union Convention on Preventing and Combating Corruption.

The organisation gave the government seven days from receipt or publication of the letter to act on its demands.

SERAP warned that failure to respond within that period could trigger legal action and other lawful measures aimed at compelling the government, MDGIF, NUPRC and other relevant authorities to address the audit findings.

The case now puts renewed focus on a fundamental question surrounding Nigeria’s petroleum industry: how much public revenue is being generated, where is it going, and who is ultimately being held accountable when billions of naira cannot be properly traced?

The allegations cited in this report are based on SERAP’s interpretation of the Auditor-General’s findings. Any individuals or institutions named have not, on the basis of the information provided, been established as criminally liable.