It has been claimed that President Bola Tinubu failed to look into "the failure to probe allegations that USD$2.1 billion and N3.1 trillion public funds of oil revenues and budgeted as fuel subsidy payments are missing and unaccounted for between 2016 and 2019."
Bendelnews learned that the Socio-Economic Rights and Accountability Project (SERAP) has sued the President in the Federal High Court of Lagos. The group is requesting a mandamus order compelling the President to immediately look into claims that N3.1 trillion and USD 2.1 billion in public funds went missing and are not being properly accounted for between 2016 and 2019.
Without holding human rights violators accountable, the complaint, which was brought by SERAP's attorneys Kolawole Oluwadare, Adelanke Aremo, Valentina Adegoke, and Ayomide Johnson, contends that economic development and sustainability are impossible.
The complaint in the lawsuit are requesting a mandamus order to compel President Tinubu to urge anti-corruption authorities to immediately look into fuel subsidy payments made by governments since 1999, identify and expose any suspected offenders, pursue legal action against them, and reclaim any proceeds of crime.
The group also asks for "an order of mandamus to direct and compel President Tinubu to use any recovered proceeds of crime as pain killer to address the impact of the subsidy removal on poor Nigerians, and to put in place mechanisms for transparency and accountability" in its case of oil sector.
"The claims that US$2.1 billion and N3.1 trillion in public monies are missing and unaccounted for amount to a fundamental violation of national anticorruption legislation as well as the nation's commitments under international agreements, such as the UN Convention against Corruption, to which Nigeria is a state party.
The Tinubu administration must investigate these claims and guarantee that those responsible for these grave crimes against the Nigerian people are held accountable under both domestic and international law.
The right of Nigerians to restitution, reparation, and a guarantee of non-recurrence would be advanced by directing and obliging President Tinubu to swiftly investigate, identify, and bring to justice the culprits as well as retrieve any lost public funds.
"Allegations of corruption in fuel subsidy payments imply that the poor have hardly ever benefited from the use of fuel subsidies, and management of the payment.
"It would be in the public interest to look into the charges, bring the accused to justice, recover any lost public cash, and put an end to the persistent impunity of the offenders.
"The Nigerian National Petroleum Corporation (NNPC) failed to submit N663,896,567,227.58 into the Federation Account, according to the audited reports between 2016 and 2019 by the Auditor General of the Federation (AGF). The Auditor-General worries that the funds might have vanished.
Additionally, it has been claimed that the NNPC did not account for the allocation of crude oil to refineries in 2019. Without any documentation, 107,239,436.00 barrels of domestic crude were lifted. The Auditor-General is concerned that the crude, which is worth N55,891,009,960.63, may have been misappropriated.
In violation of Section 162(1) of the Nigerian Constitution 1999 (as amended), the NNPC failed to deposit N1,955,354,671,268.66 and N55,157,702,848.74 in generated income into the Federation Account in 2019. The Auditor-General worries that the funds might have been misappropriated.
Additionally, N4,572,844,962.25 in "domestic petrol receipts" were not accounted for by the NNPC, which "reduced the distributable revenue in the Federation account." A further 22,929.84 litres of PMS, worth N7,056,137,180.00 and pumped from refineries, were not accounted for by the NNPC in 2019.
"The NNPC also 'illegally classified' 239,800 barrels of crude oil worth N5,498,045,220 as 'crude oil losses.
According to reports, the Department of Petroleum Resources (DPR) failed to transfer US$1,278,364,595.49 in earnings to the Federation Account in 2019. The NNPC withheld the funds from the oil and Gas Royalty accessed by the DPR.
"In 2019, the DPR also withheld N19,840,081.29 from consultants and contractors as "stamp duty" payments, but the DPR immediately returned the money to the consultants and contractors rather than sending it to the treasury.
"The DPR also paid contractors and consultants N137,225,973.35 in 2019 for a variety of contracts and consultancies, but failed to remove stamp duty.
In addition, the DPR paid N11,856,088,271.92 in salary for 2019, but failed to deduct N118,560,882.72 as the 1% Industrial Training Fund (ITF) payment. The DPR failed to transfer the $35,738,342.95 year balance in 2019.
"The DPR also withdrew US$759,387,755.10 from the DPR Signature Bonus Account in 2018 without providing any justification and did not transfer the funds to the Federation Account.
"Supply records indicate that N443,940,559,974.80 in total subsidies was paid in 2016, yet the funds were not budgeted for. The payments covered unmet Petroleum Support Fund (PSF) obligations for 2015. But in 2016, there was no payment. In 2016, just interest payments and remaining payments for the years 2014 and 2015 were made.
The Petroleum Products Pricing and Regulatory Authority (PPPRA) failed to provide any documentation regarding the payments, leading the Auditor-General to worry that the oil marketers who received the subsidy payments may not have been 'qualified to draw from the Petroleum Support Fund.
"In addition, N39,141,210,181.74 was paid from the Federation Account in 26 transactions in 2016 to various Oil Marketers, consisting of Interest Payments and Foreign Exchange Differential on Subsidy but without any documents.
"The NNPC also reported 'losses from its joint ventures' and 'zero profit' for 2016. This goes against the notion that the joint ventures should generate profits.
"In 2016, the Ministry of Petroleum Resources, Abuja, paid N14,490,000 for the supply of 3 Nissan Almera Saloon automobiles to the Ministry without the necessary paperwork. According to the Financial Regulations, at least three corporations directly procured the automobiles without conducting a competitive offer. This contract was not advertised or put out to bid.