Probe alleged missing N26bn from Fed Agency, Ministry –Group tells President Tinubu

The Socio-Economic Rights and Accountability Project (SERAP) has called on President Bola Tinubu to urgently direct the Attorney General of the Federation, Mr. Lateef Fagbemi, SAN, and relevant anti-corruption agencies to investigate claims that over N26 billion in public funds were misappropriated or stolen from the Petroleum Technology Development Fund (PTDF) and the Federal Ministry of Petroleum Resources in 2021.

The serious allegations are outlined in the 2021 audited report, released on November 13, 2024, by the Office of the Auditor-General of the Federation.

According to the report, the funds have gone missing under questionable circumstances, raising concerns of widespread corruption within the oil sector.

In a statement issued on February 1, 2025, by SERAP’s Deputy Director, Kolawole Oluwadare, the organization emphasized the need for swift legal action, stating, “Anyone found responsible should face prosecution based on credible and admissible evidence, and all stolen funds should be fully recovered and returned to the national treasury.”

SERAP further suggested that any recovered funds be used to address Nigeria’s pressing budget deficit and alleviate the nation’s ongoing debt crisis.

The organization stressed that this step could help provide much-needed financial relief for the country’s economic challenges.

“The public has a vested interest in seeing justice served for these allegations,” said Oluwadare.

“Addressing corruption in the oil sector is crucial, not just for accountability, but also for solving the country’s financial issues.”

The allegations have raised concerns about a possible breach of public trust, with SERAP highlighting violations of the Nigerian Constitution, anti-corruption laws, and international standards in the fight against corruption.

The group’s call to action underscores the importance of transparency and accountability in the management of public resources, particularly within the oil sector, which plays a critical role in Nigeria’s economy.

The letter, read in part: “Poor Nigerians have continued to pay the price for the widespread and grand corruption in the oil sector.

“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

“According to the 2021 annual audited report by the Auditor-General of the Federation, the Petroleum Technology Development Fund (PTDF) in 2021 reportedly paid over N25 billion [N25,607,890,403.11] for ‘contracts without any supporting documents.’
“The Auditor-General fears ‘the money may have been diverted.’ He wants the money recovered and remitted to the treasury.’

“The PTDF also reportedly failed to account for over N326 million [N326,065,638.00] deposited in two banks. The Auditor-General fears the money may be missing and wants it recovered and remitted to the treasury.

“The PTDF reportedly failed to account for over N107 million [N107,691,733.93] being money for ‘the supply,

installation, and commissioning of Library automation system and RFID at the Petroleum Training Institute (PTI).’
“The contract for the library ‘was awarded without the prior approval from the National Information Technology Development Agency (NITDA). The Auditor-General fears ‘the money may have been diverted.’ He wants the money recovered and remitted to the treasury

“The PTDF reportedly paid over N46 million [N46,974,216.43] to ‘three companies for services without evidence of execution.’  ‘One of the contractors was engaged on 13th April 2021 but was paid for services rendered in March 2021. All the three contractors were paid for periods they had not rendered the services to the PTDF.’

“The Auditor-General fears ‘the money may have been diverted.’ He wants the money recovered and remitted to the treasury.

The PTDF also reportedly failed to remit over N60 million [N60,355,670.03] of ‘stamp duty from the capital expenditure contracts awarded in 2019 and 2020.’ The PTDF ‘provided no reason why the money was not remitted.’

“The Auditor-General fears ‘the money may have been diverted.’ He wants the money recovered and remitted to the treasury.

“The PTDF also reportedly failed to account for over N64 million [N64,088,158.44] ‘being payment for store items not supplied.” The Auditor-General fears ‘the money may have been diverted.’ He wants the money recovered and remitted to the treasury

“The PTDF also reportedly paid over N41 million [N41,367,493.50] ‘for services not yet performed or goods not yet supplied.’ The payments were made ‘without relevant supporting documents such as invoices, receipts.’

“The Auditor-General fears ‘the money may have been diverted.’ He wants the money recovered and remitted to the treasury.’

“The Federal Ministry of Petroleum Resources reportedly spent over N137 million [N137,751,789.85] ‘from the Capital Vote for expenditures which were recurrent in nature without any approval by the National Assembly and the Minister of Finance.’

“The Auditor-General fears the money may be missing. He wants the money recovered and remitted to the treasury. He also wants sanctions applied ‘for gross misconduct specified in paragraph 3129 of the Financial Regulations 2009.’
“The Ministry reportedly failed to account for over N232 million [N232,509,238.21] ‘being payments to seven companies for consultancy services for stakeholders’ engagement in the Niger Delta in January 2021.’

“According to the Auditor-General, ‘the type of engagements and the reasons for contracting the seven companies were not stated. The venue of the engagement remains unknown. This spending of public funds appeared fictitious.’

“The Auditor-General fears ‘the money may have been diverted.’ He wants the money recovered and remitted to the treasury.’

The Ministry also reportedly failed to remit over N25 million [N25,516,938.00] of ‘taxes collected from payments of N137,929,394.58] made to contractors.’ The Auditor-General fears ‘the money may have been diverted.’ He wants the money recovered and remitted to the treasury.
“The Ministry also reportedly failed to account for over N43 million

[N43,533,036.65] ‘being irregular payments for the replacement of broken ceiling.’

The Auditor-General fears ‘the money may have been diverted.’ He wants the money recovered and remitted to the treasury.’
“The Ministry failed to account for over N74 million [N74,721,625.03] ‘being payments made as cash advances granted to officers between March and December 2021 without retirement.’ The Auditor-General fears ‘the money may have been diverted’, and wants it recovered and remitted to the treasury.

“We would be grateful if the recommended measures are taken within 7 days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall consider appropriate legal actions to compel your government to comply with our request in the public interest.

“The country’s wealth ought to be used solely for the benefit of the Nigerian people, and for the sake of the present and future generations.

“These allegations can promptly be investigated and fairly prosecuted. Taking these steps would advance the right of Nigerians to restitution, compensation and guarantee of non-repetition

 “Section 13 of the Nigerian Constitution imposes clear responsibility on your government to conform to, observe and apply the provisions of Chapter 2 of the constitution.”

“Section 15(5) imposes the responsibility on your government to abolish all corrupt practices and abuse of power

“Under Section 16(1) of the Constitution, your government has a responsibility to ‘secure the maximum welfare, freedom and happiness of every citizen on the basis of social justice and equality of status and opportunity.’
“Section 16(2) further provides that, ‘the material resources of the nation are harnessed and distributed as best as possible to serve the common good.’

The UN 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 hold public
officials to account for any violations.
“Specifically, article 26 of the UN convention requires your government to ensure ‘effective, proportionate and dissuasive sanctions’ including criminal and non-criminal sanctions, in cases of grand corruption.

“Article 26 complements the more general requirement of article 30, paragraph 1, that sanctions must take into account the gravity of the corruption allegations.”