Firdaus Obiremi
Human rights lawyer, Femi Falana, SAN, has given the Federal Government 14 days to initiate the recovery of more than $123 billion and ₦66.4 billion in alleged outstanding oil and gas revenues, warning that he will institute legal proceedings if the authorities fail to act.
Falana, in a letter dated October 28, 2026, addressed to the President of the Senate and copied to the Speaker of the House of Representatives, urged the National Assembly to compel the relevant government agencies to recover the funds allegedly owed to the Federation Account by the Nigerian National Petroleum Company Limited and other oil and gas companies.
The senior advocate said the alleged outstanding revenues comprised unpaid oil royalties, proceeds from suspected crude oil theft and undeclared exports, unremitted dividends, taxes and other collectible payments.
He warned that his law firm would approach the Federal High Court to compel the relevant authorities to discharge their statutory responsibilities if recovery measures were not initiated within 14 days of receiving the letter.
According to the letter, the demand draws on court judgments, government reports and legislative investigations into the management of Nigeria’s oil and gas revenues.
On oil royalties, Falana alleged that approximately $62 billion remained uncollected from international oil companies over 18 years following the failure to implement provisions of the Deep Offshore and Inland Basin Production Sharing Contracts Act.
He cited a Supreme Court consent judgment delivered on October 20, 2018, which directed the Federal Government to collect outstanding royalties under the law and ensure that oil-producing states received their constitutionally guaranteed 13 per cent derivation entitlements from the recovered funds.
The lawyer further cited Federal High Court judgments reportedly obtained by Akwa Ibom and Rivers states for a combined $3.3 billion, as well as a separate judgment in favour of Bayelsa State for $951 million.
Falana alleged that the Federal Government had yet to comply with the judgments, calling for immediate steps to enforce the decisions and recover the outstanding revenues.
$29bn Oil Exports Under Scrutiny
The human rights lawyer also called for the recovery of approximately $29 billion linked to alleged crude oil theft and undeclared oil and gas exports.
He referred to findings attributed to a team of Nigerian lawyers engaged by the Nigerian Maritime Administration and Safety Agency, which reportedly identified about 60.2 million barrels of crude oil, valued at $12.7 billion, allegedly discharged at a port in Philadelphia, United States, between 2011 and 2014.
Falana also cited an investigation by a House of Representatives ad hoc committee into undeclared crude oil and liquefied natural gas exports during the same period.
According to the letter, the committee identified oil and gas exports valued at $17 billion that were allegedly shipped without proper records.
He urged the authorities to pursue the recovery of the combined amount from the companies allegedly involved, while acknowledging that civil cases instituted by NIMASA over the matter remained pending before the Federal High Court.
The allegations have not been presented as final judicial findings of liability against every company concerned, and the pending cases underscore the need for due process in determining responsibility and recovering any sums established to be outstanding.
Falana Questions $23.1bn NLNG Dividends
Falana further alleged that the NNPCL had failed to remit $23.1 billion in dividends attributable to the Federal Government’s 49 per cent stake in Nigeria LNG Limited to the Federation Account.
He said NLNG had paid more than $47 billion in dividends to its shareholders over 26 years, with the Federal Government’s share channelled through NNPCL.
The lawyer argued that the alleged failure to remit the government’s share violated Section 162 of the 1999 Constitution, as amended, which governs the payment of revenues into the Federation Account.
He added that resolutions passed by the Senate and House of Representatives calling for the remittance had yet to be implemented.
Falana therefore urged the National Assembly to ensure that the relevant authorities account for the dividends and transfer any outstanding amounts due to the Federation Account.
NEITI Report Identifies Outstanding Revenues
The lawyer also relied on the Nigerian Extractive Industries Transparency Initiative’s 2022/2023 oil and gas industry report, which reportedly identified $6.071 billion and ₦66.4 billion in outstanding collectible revenues due to the Federal Government as of June 2024.
He called on the National Assembly to support NEITI’s efforts to recover the outstanding sums and strengthen accountability in the management of oil and gas revenues.
The figures, if substantiated and recovered, would represent additional resources available to the government without necessarily resorting to new borrowing.
Demands Probe Into $2.9bn Refinery Spending
Falana also called for an investigation into approximately $2.9 billion reportedly approved and paid under contracts for the rehabilitation of the Port Harcourt, Warri and Kaduna refineries.
He said the Federal Executive Council approved a $1.5 billion contract in April 2021 for the rehabilitation of the Port Harcourt refineries, followed by another $1.48 billion in August 2021 for the Warri and Kaduna facilities.
Citing subsequent announcements by NNPCL concerning the operational status of the refineries, Falana alleged that the foreign contractors had failed to fulfil their contractual obligations.
He urged the Economic and Financial Crimes Commission to investigate the contracts and pursue the recovery of the funds if breaches and recoverable losses were established.
According to him, recovering the money would enable the Federal Government to engage competent contractors to undertake the rehabilitation projects.
The demand raises questions about the relationship between the substantial public funds committed to the projects and the results subsequently achieved. However, determining whether contractual breaches occurred and whether the full sums or any portion are recoverable would require an examination of the contracts, payments, deliverables and relevant technical assessments.
Says Recovery Could Reduce Borrowing
Falana argued that recovering the alleged outstanding oil revenues would help ease the financial pressure on the Federal Government and state governments, potentially reducing their reliance on additional domestic and foreign borrowing.
He maintained that the authorities had a responsibility to protect public funds, enforce existing court judgments and ensure that revenues due to the Federation Account were collected and properly accounted for.
The lawyer also cited his firm’s involvement in preparing a bill to amend the Deep Offshore and Inland Basin Production Sharing Contracts Act, which he said was subsequently adopted, modified and passed by the National Assembly.
He relied on that involvement, alongside the court judgments and legislative investigations referenced in the letter, to support his position that there were sufficient grounds to seek judicial intervention if the authorities failed to act.
However, the figures stated in the demand contain a discrepancy requiring clarification. While the heading and opening portions cite $123.17 billion, the concluding paragraph reportedly gives a total of $118.67 billion, in addition to ₦66.4 billion.
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