The Socio-Economic Rights and Accountability Project (SERAP) has raised serious concerns over the unexplained shortfall of N500 billion that the Nigerian National Petroleum Company Limited (NNPCL) reportedly failed to remit to the Federation Account between October and December 2024, according to recent findings by the World Bank.
In a formal Freedom of Information request dated May 17, 2025, and signed by SERAP’s Deputy Director, Kolawole Oluwadare, the organization called on NNPCL’s Group CEO, Mr. Bayo Bashir Ojulari, to provide a detailed account of the missing funds. SERAP urged the company to identify all persons suspected of involvement, surcharge them for the full amount, and hand them over to Nigeria’s anti-corruption agencies—the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC)—for further investigation and prosecution.
“The blatant failure to remit N500 billion of oil revenue to the Federation Account constitutes a serious breach of public trust and the Nigerian Constitution,” Oluwadare stated. “We insist that EFCC and ICPC be invited to investigate the spending and whereabouts of these funds to ensure full recovery without further delay.”
The World Bank’s report revealed that in 2024, the NNPCL earned a total revenue of approximately N1.1 trillion from crude oil sales and related incomes. However, only N600 billion of this amount was remitted to the Federation Account, leaving a glaring deficit of N500 billion unaccounted for. This shortfall has raised alarm bells amid ongoing debates on Nigeria’s fiscal transparency and governance.
Adding to the pressure, the International Monetary Fund (IMF) recently recommended that savings from the removal of fuel subsidies be properly accounted for and transferred to the national budget. Despite these calls, NNPCL has yet to issue any public statement addressing the discrepancies flagged by the World Bank.
SERAP emphasized that the management of Nigeria’s oil wealth must prioritize the collective welfare of all Nigerians and future generations. “The Nigerian people deserve transparency and accountability, especially regarding funds derived from natural resources that belong to them,” the group said.
Failure to remit rightful revenues to the Federation Account impacts the monthly allocations to states and local governments, directly affecting grassroots development and service delivery. SERAP criticized what it described as deliberate denial of rightful allocations to sub-national governments, warning that such actions undermine Nigeria’s constitutional framework.
The NNPCL, established to oversee Nigeria’s oil and gas assets, is pivotal in the nation’s energy sector. With increasing scrutiny on oil revenue management, civil society organizations like SERAP are demanding that the company uphold the highest standards of financial transparency.
“Recovering the missing N500 billion is not just about accounting; it’s about restoring public confidence in Nigeria’s resource management,” Oluwadare added. “We urge government agencies to act swiftly and decisively.”
Nigeria’s Federation Account is the centralized pool where revenues from oil and other federal sources are deposited before distribution to the federal, state, and local governments. Accurate remittance into this account ensures smooth fiscal operations and equitable resource sharing across the country.
Past challenges with oil revenue transparency have led to calls for reforms in Nigeria’s petroleum sector, including better regulatory oversight, improved auditing processes, and enhanced accountability mechanisms.
As pressure mounts on NNPCL to clarify the N500 billion gap, the government’s response will be closely watched by stakeholders, including lawmakers, civil society, and the general public. Transparency in the handling of oil revenues remains critical to Nigeria’s economic stability and development prospects.
SERAP’s demand for investigation aligns with broader anti-corruption efforts aimed at curbing financial mismanagement within Nigeria’s oil industry. The involvement of the EFCC and ICPC could mark a turning point in addressing systemic issues that have long plagued the sector.