Falana gives Senate 14-day ultimatum over $123bn oil funds

Human rights lawyer Femi Falana, SAN, has called for the recovery of more than $123 billion and N66.4 billion allegedly owed to the Federation Account by the Nigerian National Petroleum Company Limited (NNPCL) and other oil and gas companies, Vanguard reports.

In an October 28 letter to the Senate President, copied to the Speaker of the House of Representatives, Falana said the sums include unpaid oil royalties, proceeds of alleged crude oil theft, unpaid dividends, taxes and other revenues. He warned that if no recovery steps are taken within 14 days of receipt, his firm will go to the Federal High Court to compel action.

The letter lists five categories of alleged outstanding funds:

• Royalties: about $62 billion allegedly uncollected from international oil companies over 18 years. He cited a 2018 Supreme Court consent judgment directing the government to collect them.
• Crude oil theft and undeclared exports: $12.7 billion from 60.2 million barrels allegedly discharged in Philadelphia, and $17 billion in exports shipped without proper records, a combined $29 billion.
• Dividends: $23.1 billion allegedly not remitted by NNPCL from the government’s 49 per cent stake in Nigeria LNG Limited.
• NEITI figures: $6.071 billion and N66.4 billion in outstanding collectible revenues as of June 2024.
• Refineries: about $2.9 billion paid for rehabilitating the Port Harcourt, Warri and Kaduna refineries, which he wants the EFCC to investigate.

Falana said recovering the money would reduce the need for further foreign borrowing.

The letter’s totals do not match. Its heading and opening paragraphs cite $123.17 billion, while the concluding paragraph says $118.67 billion. The figures are claims and were not independently verified.