{"id":69086,"date":"2024-02-18T22:10:58","date_gmt":"2024-02-18T22:10:58","guid":{"rendered":"https:\/\/everyday.ng\/?p=69086"},"modified":"2024-02-18T22:10:58","modified_gmt":"2024-02-18T22:10:58","slug":"69086","status":"publish","type":"post","link":"https:\/\/everyday.ng\/?p=69086","title":{"rendered":"Nigeria: A tale of missing billions of dollars, Naira, and wasted N40 trillion"},"content":{"rendered":"

The Social and Rights and Accountability Project (SERAP) has unveiled a mind-boggling missing billions of dollars and Naira, a nerve-racking wastage of N45 trillion.<\/span><\/p>\n

On Sunday, the Non-governmental organisation urged Mr Mele Kolo\u00a0Kyari, Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited to \u201cpromptly account for and explain the whereabouts of the alleged missing USD$2.04 billion and N164 billion oil revenues.\u201d<\/span><\/p>\n

SERAP said the allegations are documented in the latest annual report recently published by the Auditor-General of the Federation.<\/span><\/p>\n

SERAP urged Mr Kyari \u201cto name and shame those responsible for the disappeared oil money, surcharge them for the full amount involved, and hand them over to appropriate anticorruption agencies, as provided for under paragraph 3112(ii) of the Financial Regulations 2009, and recommended by the Auditor-General.\u201d<\/span><\/p>\n

SERAP also urged him \u201cto ensure the full recovery and remittance of the missing USD$2.04 billion and N164 billion into the Federation Account without further delay.\u201d<\/span><\/p>\n

In the letter dated 17 February 2024 and signed by SERAP deputy director Kolawole Oluwadare, the organisation said: \u201cThe missing oil revenues have further damaged the already precarious economy in the country and contributed to very high levels of deficit spending by the government.\u201d<\/span><\/p>\n

SERAP said, \u201cWithout the full recovery and remittance of the missing USD$2.04 billion and N164 billion oil revenues, the dire economic situation may worsen and Nigerians will continue to be denied access to basic public goods and services.\u201d<\/span><\/p>\n

According to SERAP, \u201cthe Auditor-General has for many years documented reports of disappearance of public funds from the NNPC. Nigerians continue to bear the brunt of these missing oil revenues.\u201d<\/span><\/p>\n

The letter, read in part: \u201cThe alleged missing oil revenues reflect a failure of NNPCL accountability more generally and are directly linked to the institution\u2019s continuing failure to uphold the principles of transparency and accountability.\u201d<\/span><\/p>\n

\u201cWe 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 the NNPCL to comply with our requests in the public interest.\u201d<\/span><\/p>\n

\u201cHad the NNPCL and its subsidiaries accounted for and remitted the disappeared public funds into the Federation Account, it is likely that more funds would have been allocated to the fulfillment of economic and social rights, such as increased spending on public goods and services.\u201d<\/span><\/p>\n

\u201cThe missing oil revenues have also impeded Nigerians\u2019 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.\u201d<\/span><\/p>\n

\u201cExplaining the whereabouts of the missing public funds, naming and shaming those suspected to be responsible and ensuring that suspected perpetrators are brought to justice and the full recovery of any missing public funds would serve the public interest and end the impunity of perpetrators.\u201d<\/span><\/p>\n

\u201cNigerians have the right to know the whereabouts of the disappeared oil money. Ensuring transparency and accountability in the management of oil revenues would advance the right of Nigerians to restitution, compensation and guarantee of non-repetition.\u201d<\/span><\/p>\n

\u201cAccording to the recently published 2020 audited report by the Auditor General of the Federation (AGF), the Nigerian National Petroleum Corporation (NNPC) failed to remit over USD$2 billion and N164 billion oil revenues into the Federation Account.\u201d<\/span><\/p>\n

\u201cThe Auditor-General fears that the money may have been diverted into private pockets, denying the government the funding needed to carry out its activities.\u201d<\/span><\/p>\n

\u201cThe NNPCL reportedly failed and\/or refused to remit N151,121,999,966. The NNPCL without any justification deducted the money from the oil royalties assessed for 2020 by the Department of Petroleum Resources (DPR) now Nigerian Upstream Petroleum Regulatory Commission (NUPRC).\u201d<\/span><\/p>\n

\u201cThe NNPCL has failed to account for the missing public funds. The Auditor-General wants the money recovered and remitted into the Federation Account.\u201d<\/span><\/p>\n

\u201cThe NNPCL also failed to remit USD$19,774,488.15 collected as government revenue into the Federation Account. The Auditor-General wants the NNPCL to account for the money, recover and remit it into the Federation Account, and to hand over those suspected to be involved to the ICPC and the EFCC.\u201d<\/span><\/p>\n

\u201cThe Nigerian Petroleum Development Company (NPDC) Ltd also reportedly failed to account for USD$2,021,411,877.47 and N13,313,565,786.49 of royalties collected from crude oil and gas sales and gas flare.\u201d<\/span><\/p>\n

\u201cThe Auditor-General wants the public funds fully recovered and remitted into the Federation Account and for those suspected to be responsible for the missing public funds to be handed over to the ICPC and the EFCC.\u201d<\/span><\/p>\n

\u201cThese grim allegations by the Auditor-General suggest a grave violation of the public trust and the provisions of the Nigerian Constitution 1999 [as amended], national anticorruption laws, and the country\u2019s obligations under the UN Convention against Corruption.\u201d<\/span><\/p>\n

\u201cThe allegations have undermined the economic development of the country, trapped the majority of Nigerians in poverty and deprived them of opportunities.\u201d<\/span><\/p>\n

\u201cSERAP is concerned that despite the country\u2019s 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.\u201d<\/span><\/p>\n

\u201cCombating 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.\u201d<\/span><\/p>\n

\u201cSERAP notes that Section 15(5) of the Nigerian Constitution 1999 (as amended) requires public institutions to abolish all corrupt practices and abuse of power.\u201d<\/span><\/p>\n

\u201cSection 16(2) of the Nigerian Constitution further provides that, \u2018the material resources of the nation are harnessed and distributed as best as possible to serve the common good.\u2019\u201d<\/span><\/p>\n

\u201cSection 13 of the Nigerian Constitution 1999 [as amended] imposes clear responsibility on the NNPCL to conform to, observe and apply the provisions of Chapter 2 of the constitution.\u201d<\/span><\/p>\n

\u201cParagraph 3112(ii) of the he Financial Regulations 2009 provides that, \u2018Where a public officer fails to account for government revenue, such officer shall be surcharged for the full amount involved and such officer shall be handled over to either the Economic and Financial Crimes Commission (EFCC) or the Independent Corrupt Practices and Other Related Offences Commission (ICPC).\u2019\u201d<\/span><\/p>\n

\u201cNigeria has made legally binding commitments under the UN Convention against Corruption to ensure accountability in the management of public resources. Articles 5 and 9 of the UN Convention against Corruption also 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.\u201d<\/span><\/p>\n

Earlier last week, SERAP noted that in Nigeria where<\/span> snakes, monkeys and termites have been accused of either swallowing or tampering with huge amounts of government money, social commentators and public affairs analysts are wondering what might have happened to the returned stolen funds under former President Muhammadu Buhari which have reportedly vanished from the Central Bank of Nigeria (CBN).<\/span><\/p>\n

According to the organisation, all the stolen public funds recovered between 2016 and 2019 by the immediate past government of Muhammadu Buhari are missing from the Central Bank of Nigeria.<\/span><\/p>\n

The group stressed that the disappearance of the missing looted funds was noticed when the management of the apex bank could not account for them.\u00a0 \u00a0<\/span><\/p>\n

SERAP through its X handle wrote: \u201cBREAKING: Recovered stolen public funds between 2016 and 2019 are reportedly missing from the Central Bank of Nigeria [CBN].\u00a0 The Auditor-General of the Federation wants the CBN to account for the money.\u201d <\/span><\/p>\n

The former Attorney-General and Minister of Justice, Abubakar Malami, had disclosed that $1 billion in looted funds had so far been recovered by the Buhari-led administration.<\/span><\/p>\n

He disclosed then that the funds had been deployed to various sectors of the economy, including poverty alleviation.<\/span><\/p>\n

However, Mr Olanrewaju Suraju, Chairman of HEDA Resource Centre had disclosed that the figure published by the government was not accurate.<\/span><\/p>\n

He said the only thing that was correct about President Buhari\u2019s administration was the inconsistency in the stating and flaunting of figures, especially regarding asset recovery.<\/span><\/p>\n

Suraju lamented that the government\u2019s asset recovery programme had not been coordinated.<\/span><\/p>\n

He explained that a serious government that values statistics and data could have been more constructive and responsible to provide data that covers international recoveries and local recoveries.<\/span><\/p>\n

Also, SERAP, two weeks ago, urged the 36 state governors in the country and the Minister of the Federal Capital Territory, Abuja, Mr Nyesom Wike to \u201cdisclose details of federal allocations meant for local governments in your state and the FCT and the actual disbursement of the allocations to the local governments since the return of democracy in 1999.\u201d<\/span><\/p>\n

It also urged them \u201cto promptly invite Independent Corrupt Practices and Other Related Offences Commission (ICPC) and Economic and Financial Crimes Commission (EFCC) to investigate the actual disbursement and spending of federal allocations meant for local governments in your state and the FCT since May 1999.\u201d<\/span><\/p>\n

Former president Muhammadu Buhari had in December 2022 stated that, \u201cIf the money from the Federation Account to the State is about N100m, N50m will be sent to the chairman but he will sign that he received N100 million. The chairman will pocket the balance and share it with whoever he wants to share it with.\u2019\u201d<\/span><\/p>\n

In the freedom of information requests dated 27 January 2024 and signed by SERAP deputy director Kolawole Oluwadare, the organisation said: \u201cNigerians have the right to know the details of actual disbursement and spending of federal allocations in your state and the FCT.\u201d<\/span><\/p>\n

SERAP said, \u201cStates and the FCT should be\u00a0guided by transparency and accountability principles and proactively publish information pertaining to their actual disbursement and spending of federal allocations meant for local governments.\u201d<\/span><\/p>\n

According to SERAP,\u00a0\u201cOpacity in the amounts of federal allocations actually disbursed to local governments in your state has continued to have negative impacts on the fundamental interests of the citizens and the public interest.\u201d<\/span><\/p>\n

The FoI requests, read, in part: \u201cWe 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 you and your state and the FCT to comply with our requests in the public interest.\u201d\u00a0<\/span><\/p>\n

\u201cTransparency in the actual disbursement and spending of federal allocations meant for local governments is fundamental to increase accountability, prevent corruption, and build trust in democratic institutions, and strengthen the rule of law.\u201d<\/span><\/p>\n

\u201cImplicit in the freedom of expression is the public\u2019s right to know what governments are doing on their behalf, without which truth would languish and people\u2019s participation in government would remain fragmented.\u201d<\/span><\/p>\n

\u201cTransparency would ensure that the allocations are not diverted into private pockets, and increase public trust that the money would be used to benefit Nigerians resident in these local government areas.\u201d<\/span><\/p>\n

\u201cSERAP is seriously concerned that years of allegations of corruption and mismanagement of federal allocations meant for local governments have contributed to widespread poverty, underdevelopment and lack of access to public goods and services in several states.\u201d<\/span><\/p>\n

\u201cEnsuring transparency and accountability in the actual disbursement and spending of federal allocations in your state would also improve the enjoyment by Nigerians of their right to natural wealth and resources.\u201d<\/span><\/p>\n

\u201cYou have a legal responsibility to promote transparency and accountability in the actual disbursement and spending of federal allocations meant for local government areas in your state, and to ensure that the allocations are fully\u00a0disbursed to the local governments.\u201d<\/span><\/p>\n

\u201cSERAP is concerned that despite the country\u2019s enormous oil wealth, ordinary Nigerians have derived very little benefit from oil money primarily because of widespread grand corruption, and\u00a0the culture of impunity of perpetrators.\u201d<\/span><\/p>\n

\u201cCombating the corruption epidemic in the spending of federal allocations meant for local government areas in your state would alleviate poverty, improve access of Nigerians to basic public goods, and enhance the ability of the local governments to effectively and efficiently discharge their constitutional and statutory responsibilities.\u201d<\/span><\/p>\n

\u201cAccording to our information, the 36 states in Nigeria and the federal capital territory, Abuja, have collected over N40 trillion federal allocations meant for the 774 local governments areas in the country and FCT.\u201d<\/span><\/p>\n

\u201cThe Federation Account Allocation Committee (FAAC) disbursed to states N225.21 billion federal allocations meant for local governments in November 2023 alone. States also collected N258,810,449,711.47 federal allocations meant for local government areas in December 2023.\u201d<\/span><\/p>\n

\u201cHowever, there is opacity in the actual disbursement of federal allocations to the local government areas in your state. States and the FCT have over the years failed and\/or refused to disclose the portion of federal allocations that are disbursed by state governors.\u201d<\/span><\/p>\n

\u201cSERAP notes that former president Muhammadu Buhari recently alleged that state governors routinely pocket or divert federal allocations meant for local governments areas in their states.\u201d<\/span><\/p>\n

\u201cAccording to Buhari, \u2018If the money from the Federation Account to the State is about N100 million, N50 million will be sent to the chairman but he will sign that he received N100 million. The chairman will pocket the balance and share it with whoever he wants to share it with.\u2019\u201d<\/span><\/p>\n

\u201cSERAP also urges you to provide details of the transparency and accountability mechanisms that have been put in place to ensure that the trillions of naira of federal allocations that have been received by your state and the FCT\u00a0are\u00a0not embezzled, misappropriated or diverted into private pockets.\u201d<\/span><\/p>\n

\u201cSection 162(6) of Nigerian Constitution 1999 (as amended) provides that each state shall maintain a \u2018State Joint Local Government Account\u2019 into which all allocations to local government councils from the Federation Account and from the Government of the State shall be paid.\u201d<\/span><\/p>\n

\u201cSection 162(5) makes it mandatory that amounts standing to the credit of the councils will be allocated to the States for the benefit of their local government councils.\u201d\u00a0\u201cSection\u00a013 of the Nigerian Constitution imposes clear responsibility on your state to conform to, observe and apply the provisions of Chapter 2 of the constitution.\u201d<\/span><\/p>\n

\u201cSERAP notes that Section 15(5) of the Nigerian Constitution requires public institutions to abolish all corrupt practices and abuse of power. Section 16(2) further provides that, \u2018the material resources of the nation are harnessed and distributed as best as possible to serve the common good.\u2019\u201d<\/span><\/p>\n

\u201cNigeria has made legally binding commitments under the UN Convention against Corruption to ensure accountability in the management of public resources. Articles 5 and 9 of the UN Convention against Corruption also impose legal obligations on your state to ensure proper management of public affairs and public funds.\u201d<\/span><\/p>\n

\u201cThe public interest in publishing the information sought outweighs any considerations to withhold the information. Nigerians are entitled to the right to receive information without any interference or distortion, and the enjoyment of this right should be based on the principle of maximum disclosure.\u201d<\/span>
\n<\/p>\n

\u25cf Main materials from serap-nigeria.org<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

The Social and Rights and Accountability Project (SERAP) has unveiled a mind-boggling missing billions of dollars and Naira, a nerve-racking wastage of N45 trillion. On Sunday, the Non-governmental organisation urged Mr Mele Kolo\u00a0Kyari, Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited to \u201cpromptly account for and explain the whereabouts of the […]<\/p>\n","protected":false},"author":7,"featured_media":56239,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,5777,7],"tags":[47,5471,351],"class_list":["post-69086","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","category-features","category-news","tag-governors","tag-nnpcl","tag-serap"],"_links":{"self":[{"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/posts\/69086","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/everyday.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=69086"}],"version-history":[{"count":0,"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/posts\/69086\/revisions"}],"wp:attachment":[{"href":"https:\/\/everyday.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=69086"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/everyday.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=69086"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/everyday.ng\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=69086"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}