Human rights lawyer Femi Falana (SAN) has urged the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, to immediately initiate recovery of over $120.5 billion and N66.4 billion allegedly owed to the federal government by the Nigerian National Petroleum Company Limited (NNPCL), international oil companies (IOCs), and other oil sector operators.
Falana made the demand in a letter written on behalf of the Alliance on Surviving Covid-19 and Beyond (ASCAB), insisting that court rulings, investigative reports, and government committee findings confirm that the funds remain outstanding and must be remitted to the Federation Account.
He warned that if the Attorney-General fails to act within 14 days, ASCAB would approach the court to compel compliance with constitutional and statutory duties on revenue recovery.
The senior advocate identified several categories of recoverable funds, including $62 billion in unpaid royalties allegedly owed by international oil companies under the Deep Offshore and Inland Basin Production Sharing Contracts Act.
He argued that Section 16 of the Act provides for royalty adjustments when crude oil prices exceed $20 per barrel, a provision he said was not enforced for about 18 years, resulting in massive revenue losses.
Falana further noted that a Supreme Court consent judgment delivered on October 20, 2018, in a suit involving Akwa Ibom, Bayelsa, and Rivers States, directed the Federal Government to recover the royalties and ensure proper remittance of derivation funds.
He also cited findings of a committee set up by former Attorney-General Abubakar Malami, which reportedly confirmed that the $62 billion could be recovered from the oil companies involved.
In addition, Falana said about $29 billion is recoverable from crude oil theft, unaccounted exports, and undeclared shipments, referencing reports from parliamentary and maritime investigations.
He also cited findings attributed to NIMASA-linked legal assessments which reportedly indicated that millions of barrels of crude oil were shipped without proper documentation through foreign ports between 2011 and 2014, alongside a House of Representatives ad hoc committee report estimating billions of dollars in untracked crude and LNG exports.
Falana called for EFCC intervention to recover the funds from implicated oil and shipping companies.
On Nigeria LNG Limited (NLNG), he alleged that the Nigerian National Petroleum Company Limited failed to remit about $21.5 billion in dividends received on behalf of the federal government.
He explained that NNPCL’s 49 per cent stake in NLNG entitled it to dividends estimated at $21.5 billion over 26 years, which he said had not been transferred to the Federation Account despite multiple recommendations.
Falana also referenced NEITI reports indicating $6.071 billion and N66.4 billion in outstanding revenues as of mid-2024.
He criticised the National Assembly for approving external borrowing despite what he described as “recoverable domestic revenues running into billions of dollars.”
He further demanded recovery of $2.9 billion allegedly spent on refinery rehabilitation projects, urging EFCC investigation into the contracts and associated transactions.
Falana insisted that recovering the funds would significantly reduce Nigeria’s reliance on external borrowing and improve fiscal stability.
“If the said sum is recovered, the federal and state governments will avoid further external loans,” he stated.
Neither the Attorney-General’s office nor the NNPCL has responded publicly to the allegations as of press time.