Human rights lawyer, Femi Falana, has called on the National Assembly to initiate measures to recover $123.17bn in alleged outstanding oil royalties, taxes and dividends, as well as N66.4bn, from the Nigerian National Petroleum Company Limited (NNPC) and other oil and gas companies.
Falana made the demand in a letter dated October 28, 2026, titled Request to Recover Dividends, Taxes and Royalties Worth $123.17bn and N66.4bn from NNPC and Other Companies and Remit Same to the Federation Account.
He urged lawmakers to ensure that the outstanding revenues were recovered and paid into the Federation Account, warning that failure to commence recovery efforts within 14 days of receiving the letter would leave him with no option but to approach the Federal High Court.
In the letter, a copy of which was acknowledged and made available to The Punch on Thursday, the Senior Advocate of Nigeria identified several categories of outstanding revenue.
These include $62bn in unpaid oil royalties, $23.1bn in alleged unremitted dividends from Nigeria LNG Limited, $6.071bn in outstanding industry revenues, as well as funds linked to crude oil theft and refinery rehabilitation contracts.
On the outstanding royalties, Falana referenced a Supreme Court consent judgment delivered on October 20, 2018, which directed the Federal Government to collect royalties that had accumulated over 18 years under the Deep Offshore and Inland Basin Production Sharing Contracts Act.
He explained that Akwa Ibom, Bayelsa and Rivers states had approached the Supreme Court to compel the Federal Government to implement provisions of the law requiring increased royalties when international crude oil prices exceeded $20 per barrel.
According to him, a committee established by the Office of the Attorney-General of the Federation subsequently established that international oil companies owed approximately $62bn in unpaid royalties.
Falana added that Akwa Ibom and Rivers states later secured a Federal High Court judgment for a combined $3.3bn, while Bayelsa obtained a separate judgment worth $951m over their respective claims.
He alleged that the Federal Government had yet to comply with the judgments.
The lawyer also demanded the recovery of $29bn connected to alleged crude oil theft and unrecorded exports, referring to investigations conducted by the Nigerian Maritime Administration and Safety Agency (NIMASA) and the House of Representatives.
He cited findings by lawyers engaged by NIMASA, who reportedly discovered that approximately 60.2 million barrels of crude oil, valued at $12.7bn, allegedly stolen from Nigeria, were discharged at the Port of Philadelphia in the United States between 2011 and 2014.
He said the legal team submitted its findings to the Office of the Attorney-General before filing nine civil cases at the Federal High Court in Abuja and Lagos to recover the value of the allegedly stolen crude oil and liquefied gas.
Falana also referred to a 2016 investigation by a House of Representatives ad hoc committee, which reportedly established that crude oil and liquefied natural gas worth $17bn had been exported without proper documentation.
According to him, the committee traced the shipments to the ports of Houston and Lake Charles in the United States.
He called on the National Assembly to direct the Economic and Financial Crimes Commission to pursue the recovery of the funds from the companies allegedly involved.
On the $23.1bn in NLNG dividends, Falana accused NNPC of failing to remit revenues due to the Federal Government from its 49 per cent shareholding in the company.
He stated that Nigeria LNG Limited, established in 1989, had distributed more than $47bn in dividends to its shareholders over 26 years, with the Federal Government’s portion received through NNPC.
Other shareholders identified in the letter include Shell, which holds 25.6 per cent; TotalEnergies, with 15 per cent; and Eni International, with 10.4 per cent.
Falana maintained that the dividends received by NNPC on behalf of the Federal Government ought to have been transferred into the Federation Account in accordance with Section 162 of the 1999 Constitution, as amended.
He further alleged that previous resolutions by the Senate and House of Representatives directing the remittance of the funds had not been implemented.
The senior advocate also called for the recovery of $6.071bn and N66.4bn allegedly owed by oil and gas companies, citing the Nigerian Extractive Industries Transparency Initiative’s 2022/2023 Independent Oil and Gas Industry Report.
He said NEITI disclosed on September 27, 2024, that outstanding collectible revenues owed to the Federal Government as of June 2024 stood at the stated amounts.
According to Falana, copies of the report were submitted to both chambers of the National Assembly in November 2024, in line with the NEITI Act.
He urged lawmakers to support the agency in recovering the outstanding revenues.
The letter also raised concerns about the rehabilitation of the Port Harcourt, Warri and Kaduna refineries, following Federal Executive Council approvals of contracts worth approximately $2.98bn in 2021.
The Federal Government had approved $1.5bn for the rehabilitation of the Port Harcourt refineries in April 2021, while another $1.48bn was approved for the Warri and Kaduna facilities in August of the same year.
Falana noted that NNPC announced in December 2024 that rehabilitation work at the Port Harcourt and Warri refineries had been substantially completed, with the Kaduna project reportedly nearing completion.
However, he pointed to a subsequent announcement that the Warri refinery suspended operations on January 25, 2025, following safety concerns involving its crude distillation unit’s main heater.
He also referenced the shutdown of the Port Harcourt refineries for scheduled maintenance in May 2025.
Falana argued that the contractors had failed to fulfil their obligations under the rehabilitation agreements and called for the recovery of the contract sums.
He maintained that recovering the outstanding revenues would provide additional resources for the Federal Government and state governments while reducing dependence on external borrowing.
The lawyer warned that he would institute legal proceedings at the Federal High Court if the authorities failed to begin recovery measures within the stipulated 14-day period.
He also defended his firm’s involvement in the matter, recalling its role in preparing and submitting a proposed amendment to the Deep Offshore and Inland Basin Production Sharing Contracts Act in 2017.
According to him, the proposal was adopted and sponsored by a senator and passed first reading in the Senate before the dissolution of the Eighth National Assembly. The Ninth National Assembly subsequently adopted and passed the amendment.
He recalled that former Senate President, Ahmad Lawan, had said the amendment would increase Nigeria’s annual revenue by at least $1.5bn.
Source: The Punch
