- Femi Falana has urged the National Assembly to recover $123.17bn and N66.4bn in alleged outstanding oil revenues from NNPC and other companies.
- He gave the authorities 14 days to begin recovery measures or face legal action at the Federal High Court.
Human rights lawyer Femi Falana has urged the National Assembly to recover $123.17bn and N66.4bn in alleged unpaid oil revenues.
He wants lawmakers to compel the Nigerian National Petroleum Company Limited (NNPC) and other oil and gas companies to pay the funds into the Federation Account.
Falana made the request in a letter dated October 28, 2026. He gave the authorities 14 days to begin recovery measures or face legal action.
The letter identifies several outstanding revenue claims. These include $62bn in unpaid oil royalties, $23.1bn in alleged NLNG dividends and $6.071bn in other industry revenues.
Falana also cited $29bn linked to alleged crude oil theft and undeclared exports. In addition, he questioned spending on refinery rehabilitation.
Falana Seeks Recovery of $62bn in Oil Royalties
Falana cited a Supreme Court consent judgment delivered on October 20, 2018. He said the judgment directed the Federal Government to collect royalties accrued over 18 years.
The royalties arose under the Deep Offshore and Inland Basin Production Sharing Contracts Act. The law provides for higher royalties when international crude oil prices exceed $20 per barrel.
Akwa Ibom, Bayelsa and Rivers states had approached the Supreme Court. They sought to compel the Federal Government to enforce the law, according to Falana.
A committee in the Office of the Attorney-General of the Federation later identified $62bn in uncollected royalties from international oil companies, he said.
Falana also cited court judgments involving Akwa Ibom, Rivers and Bayelsa states. Akwa Ibom and Rivers secured a Federal High Court judgment for a combined $3.3bn.
Bayelsa obtained a separate judgment for $951m over its alleged entitlement. Falana said the Federal Government had yet to comply with the judgments.
Falana Cites $29bn in Alleged Crude Oil Losses
Falana linked another $29bn to alleged crude oil theft and undeclared exports. He cited investigations by the Nigerian Maritime Administration and Safety Agency (NIMASA) and the House of Representatives.
Lawyers engaged by NIMASA reportedly found that thieves had stolen about 60.2 million barrels of Nigerian crude oil. The shipments, valued at $12.7bn, allegedly reached the Port of Philadelphia between 2011 and 2014.
Falana said the lawyers submitted their findings to the Office of the Attorney-General. They later filed nine civil cases at the Federal High Court in Abuja and Lagos.
The cases sought to recover the value of the allegedly stolen crude oil and liquefied gas.
He also referred to a 2016 House of Representatives ad hoc committee investigation. The committee reportedly found that $17bn worth of crude oil and liquefied natural gas left Nigeria without proper records.
Falana said the shipments reached the ports of Houston and Lake Charles in the United States.
He urged lawmakers to direct the Economic and Financial Crimes Commission to pursue recovery from the companies allegedly involved.
Falana Questions NNPC’s NLNG Dividend Payments
Falana alleged that NNPC had failed to remit $23.1bn in dividends from its 49 per cent stake in Nigeria LNG Limited (NLNG).
He said NLNG had paid shareholders more than $47bn in dividends over 26 years. The company began operations in 1989.
NLNG’s other shareholders are Shell, with 25.6 per cent; TotalEnergies, with 15 per cent; and Eni International, with 10.4 per cent.
Falana argued that NNPC should transfer the Federal Government’s dividends to the Federation Account. He cited Section 162 of the 1999 Constitution, as amended.
He added that the Senate and House of Representatives had passed resolutions demanding the remittance. However, he alleged that NNPC had ignored them.
NEITI Report Shows $6.071bn and N66.4bn in Outstanding Revenues
Falana also cited the Nigerian Extractive Industries Transparency Initiative’s 2022/2023 Independent Oil and Gas Industry Report.
NEITI disclosed on September 27, 2024, that oil and gas companies owed the Federal Government $6.071bn and N66.4bn, according to Falana.
The figures represented outstanding collectible revenues as of June 2024.
NEITI sent copies of the report to both chambers of the National Assembly in November 2024, he said.
Falana urged lawmakers to support the agency’s efforts to recover the amounts.
Falana Questions Refinery Rehabilitation Spending
The letter also questioned the results of rehabilitation contracts for the Port Harcourt, Warri and Kaduna refineries.
The Federal Executive Council approved contracts worth about $2.98bn in 2021. It allocated $1.5bn for the Port Harcourt refineries in April 2021.
In August 2021, the council approved another $1.48bn for the Warri and Kaduna refineries.
Falana said NNPC announced in December 2024 that work on the Port Harcourt and Warri refineries was substantially complete. The company also said work on Kaduna was almost finished.
However, NNPC announced that the Warri refinery stopped operations on January 25, 2025. Safety issues involving the crude distillation unit’s main heater caused the shutdown.
Falana also cited the Port Harcourt refineries’ shutdown for planned maintenance in May 2025.
He argued that the contractors had breached their rehabilitation agreements. He called for the recovery of the contract sums.
“In view of the foregoing, we are compelled to request the Office of the Attorney-General to recover the total sum of $123.17bn and N66.4bn owed the Government of the Federation by the Nigerian National Petroleum Corporation Limited, and some oil and gas companies operating in Nigeria,” the letter stated.
Falana said recovering the funds would reduce the Federal Government’s reliance on external borrowing. He added that the revenue would benefit the federation and states.
Falana Gives Authorities 14 Days to Act
Falana gave the authorities 14 days to begin recovery measures. He said his firm would approach the Federal High Court if they failed to act.
“If you fail to initiate legal measures for the recovery of the aforesaid huge funds belonging to the Government of the Federation within 14 days of the receipt of this letter, we shall not hesitate to file the necessary processes in the Federal High Court with a view to compelling you to discharge the duty of your office,” he wrote.
Falana also recalled his firm’s role in drafting and submitting a bill in 2017. The bill sought to amend the Deep Offshore and Inland Basin Production Sharing Contracts Act.
He said a senator sponsored the bill. It passed first reading before the Eighth National Assembly dissolved.
The Ninth National Assembly later adopted and passed the amendment, according to Falana.
He recalled that former Senate President Ahmad Lawan said the amendment would increase Nigeria’s revenue by at least $1.5bn annually.