SERAP has asked President Bola Tinubu to order an urgent probe into more than ₦94.4 billion in public funds that the 2024 Auditor-General’s report says were diverted, unremitted or irregularly spent by the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The audit, released on 7 August 2026, covers transactions from January 2023 through 31 December 2024 and flags numerous gaps in accounting for petroleum-product revenues, natural-gas sales and gas-flaring penalties.
In a letter dated 3 October 2026, SERAP urged the president to direct the appropriate anti-corruption agencies to promptly investigate over ₦94.4 billion in public funds reportedly diverted, unremitted, unaccounted for or irregularly spent, and ensure the prosecution of anyone responsible where sufficient admissible evidence is established, as well as the recovery and remittance of all the affected public funds.
The civil-society group also demanded that MDGIF publish audited financial statements for 2022, 2023 and 2024 and forward them to the National Assembly’s Public Accounts Committees as recommended by the Auditor-General.
SERAP Calls for Immediate Audit
Deputy director Kolawole Oluwadare signed the correspondence, stating that anyone found responsible should be appropriately sanctioned and prosecuted where sufficient admissible evidence is established, irrespective of status, position or institutional affiliation.
SERAP said, ‘Every naira identified in the Auditor-General’s report must be properly accounted for, and any oil funds found to have been diverted, misapplied, improperly spent or otherwise unaccounted for must be fully recovered and remitted to the Treasury.’
Specific Shortfalls Highlighted
The MDGIF ‘failed to remit ₦26.549 billion (₦26,549,415,244.48) in revenue from the sale of petroleum products between 1 January 2022 and 31 December 2024.’ The Auditor-General expressed concern that ‘the money may have been diverted’, and recommended its recovery and remittance to the Treasury.
The MDGIF also ‘failed to remit and report ₦12.480 billion (₦12,479,683,553.87) in gas-flaring penalties for 2023.’ The Auditor-General raised concerns about the failure to collect and promptly remit the net revenue generated by NUPRC from gas flaring into the MDGIF Account, as required by section 52(8) of the Petroleum Industry Act 2021.
The MDGIF also ‘engaged and paid a consultant ₦3.518 billion (₦3,517,519,272.95) to recover gas-flaring penalties without the approval of the President.’ According to the Auditor-General, ‘there was no evidence of due process or due diligence in the engagement.’
The MDGIF reportedly spent ₦261.852 million (₦261,851,719.18) to engage Transaction Advisors, but the Auditor-General found no evidence of job execution by the Transaction Advisors and expressed concern that the money may have been ‘diverted.’
The MDGIF also spent ₦65.8 million (₦65,800,000.00) to engage Transaction Advisors in August 2024 without due process. The Auditor-General stated that the action ‘may have violated public procurement procedures’ and recommended that the Executive Director of the MDGIF account for the expenditure.
Legal Framework and Obligations
Within the constitutional context, Section 13 of the 1999 Constitution obligates the government to apply Chapter II provisions, while Section 15(5) mandates abolition of corrupt practices.
Section 14 further requires that the security and welfare of the people remain the primary purpose of government actions.
Internationally, Nigeria is bound by the UN Convention against Corruption, which demands transparent public-procurement systems and access to information under Articles 9 and 10.
Article 13 of the same convention recognises civil-society participation in preventing corruption, aligning with SERAP’s call for public accountability.
The African Union Convention on Preventing and Combating Corruption similarly requires effective investigation and sanctioning of corrupt conduct.
Next Steps and Potential Outcomes
In the October 3 2026 letter, SERAP stipulated a seven-day period for the President to act on the outlined measures.
Should the deadline lapse without response, SERAP indicated it would consider legal actions and other lawful measures to compel compliance.
The organization also demanded that MDGIF publish a detailed schedule showing amounts due, collected, remitted, and recovered, together with transaction dates and responsible officials.
Failure to submit these statements for three consecutive years, as noted by the Auditor-General, undermines effective oversight and public scrutiny.
Ensuring that the ₦12.940 billion revenue from 2024 natural-gas sales is properly collected and remitted will further support the fund’s remediation mandate.
