The Socio-Economic Rights and Accountability Project (SERAP) has asked President Bola Tinubu to compel the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to explain what happened to more than ₦94.4 billion in public funds that the Auditor-General says were diverted, unremitted, unaccounted for or irregularly spent.
The allegations are contained in the Auditor-General of the Federation’s 2024 Annual Report (Volume 2), published on August 7, 2026. The findings cover periods between January and December 2023 and ending on December 31, 2024.
In a letter dated October 3, 2026 and signed by SERAP deputy director Kolawole Oluwadare, the organisation urged the President to direct the appropriate anti-corruption agencies to investigate the matter promptly.
It also asked that anyone found responsible be prosecuted where sufficient admissible evidence exists, and that all affected funds be recovered and paid into the Treasury.
SERAP further asked Tinubu to direct the MDGIF to submit and publish its audited financial statements for 2022, 2023 and 2024, and to forward them promptly to the Public Accounts Committees of the National Assembly, as the Auditor-General recommended.
The group said anyone found responsible should face sanctions, irrespective of status, position or institutional affiliation. According to SERAP, every naira identified in the report must be accounted for, and any oil funds found to have been diverted, misapplied or improperly spent must be fully recovered.
SERAP asked the President to act within seven days of receiving or publishing the letter. It warned that failing this, it would consider appropriate legal action and other lawful measures to compel the government, the MDGIF, the NUPRC and other relevant authorities to comply.
The organisation also wants the MDGIF and NUPRC directed to publish a clear schedule showing the amounts due, collected, remitted and recovered, the dates of the transactions, the officials or institutions responsible and the accounts into which the funds were paid.
SERAP said there is a legitimate public interest in justice and accountability, noting that the findings raise basic questions about the integrity, transparency and effectiveness of the management of Nigeria’s petroleum revenues and gas flaring penalties.
It added that Tinubu, who is also Minister of Petroleum Resources, carries a particular responsibility for oversight of the institutions concerned, which makes prompt investigation especially important.
According to the report, the MDGIF failed to remit ₦26.549 billion in revenue from the sale of petroleum products between January 1, 2022, and December 31, 2024.
The Auditor-General expressed concern that the money may have been diverted and recommended its recovery and remittance to the Treasury.
The MDGIF also failed to remit and report ₦12.480 billion in gas flaring penalties for 2023.
The Auditor-General pointed to the failure to collect and promptly remit net revenue generated by the NUPRC from gas flaring into the MDGIF account, as required by section 52(8) of the Petroleum Industry Act 2021.
The report warned that this creates risks of fund shortages for environmental remediation and potential civil crisis arising from unaddressed environmental hazards.
The MDGIF further engaged and paid a consultant ₦3.518 billion to recover gas flaring penalties without the President’s approval.
The Auditor-General said there was no evidence of due process or due diligence in the engagement and raised concern that the money may have been diverted.
For its part, the NUPRC reportedly failed to remit ₦38.610 billion in gas flaring penalties that were collected due to the MDGIF. The Auditor-General again flagged the risk of shortages of funds for environmental remediation.
The report also said the MDGIF failed to collect and account for ₦12.940 billion in revenue from 2024 sales of natural gas, with concern that the money may have been diverted.
In addition, the MDGIF reportedly spent ₦261.852 million on Transaction Advisors, but the Auditor-General found no evidence that the work was done and suspected the money may have been diverted.
Another ₦65.8 million was spent to engage Transaction Advisors in August 2024 without due process.
The Auditor-General said this may have violated public procurement procedures and recommended that the MDGIF Executive Director account for the expenditure.
SERAP said the failure to account for billions of naira in petroleum product revenues, gas sales revenues and gas flaring penalties undermines public confidence in the management of the country’s petroleum resources.
It warned of a serious risk that funds meant for lawful public purposes, including environmental remediation, may have been lost, misapplied or improperly withheld.
The organisation said the audit findings point to repeated failures of basic financial and administrative controls.
These include failure to remit and account for revenues, inadequate documentation, payments without evidence of work done, consultancy and procurement arrangements without required approvals, and failure to submit and publish audited financial statements.
The failure to publish audited accounts for three consecutive years, it added, weakens legislative oversight and public scrutiny of the MDGIF’s finances.
SERAP stressed that transparent investigation is especially important because the funds involved should be available for protecting affected communities and cleaning up the environment.
The group cited section 13 of the 1999 Constitution (as amended), which requires the government to observe and apply the provisions of Chapter II. It also referred to section 15(5), which requires the State to abolish all corrupt practices and abuse of power, and section 14, which makes the security and welfare of the people the primary purpose of government.
SERAP added that Nigeria is a state party to the UN Convention against Corruption and the African Union Convention on Preventing and Combating Corruption, both of which require effective measures to prevent, investigate and sanction corruption.
It pointed to Article 9 of the UN Convention on transparent public procurement and public finances, Article 10 on transparency in public administration and access to information, and Article 13 on the role of civil society and public participation.
However, MDGIF and NUPRC are yet to respond to the allegation at Press Time.
