Falana-Led ASCAB Gives AGF 14 Days To Recover $120.5Billion, N66.4Billion From NNPCL, Oil Firms; Threatens Legal Action
Falana-Led ASCAB Gives AGF 14 Days To Recover $120.5Billion, N66.4Billion From NNPCL, Oil Firms; Threatens Legal Action
In a letter dated June 3, 2025, and signed by human rights lawyer, Femi Falana (SAN), ASCAB said the demand was based on court judgments and reports by government agencies which, according to the group, established that huge sums in unpaid royalties, taxes and dividends remain outstanding.
The Alliance on Surviving COVID-19 and Beyond (ASCAB) has called on the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), to initiate legal action to recover what it described as over $120.5 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.
In a letter dated June 3, 2025, and signed by human rights lawyer, Femi Falana (SAN), ASCAB said the demand was based on court judgments and reports by government agencies which, according to the group, established that huge sums in unpaid royalties, taxes and dividends remain outstanding.
The letter, titled “Request to Recover Dividends, Taxes and Royalties Worth $120.5 Billion and N66.4 Billion From NNPCL and Other Companies and Remit Same to the Federation Account,” was addressed to the Attorney-General in Abuja.
Falana stated that ASCAB was drawing the government’s attention to “relevant judgments of courts of competent jurisdiction and reports of some agencies of the Federal Government which have established that the Government of the Federation is owed the sum of $120.5 billion and N66.4 billion being outstanding royalties, taxes and dividends.”
$62 Billion in Uncollected Royalties
According to the group, the largest component of the claim relates to $62 billion in alleged outstanding royalties from international oil companies under the Deep Offshore and Inland Basin Production Sharing Contracts Act.
ASCAB recalled that the Federal Government had failed for years to implement provisions of the law requiring an upward review of royalties whenever crude oil prices exceeded $20 per barrel.
“Confronted with the fact of the economic sabotage, the Federal Government admitted that the country had lost billions of dollars due to the non-implementation of the law but our demand for the collection of the huge fund was ignored by relevant public institutions,” the letter stated.
The group referenced a Supreme Court consent judgment delivered on October 20, 2018, which directed the Federal Government to recover outstanding royalties accrued over 18 years.
It added that a committee set up by former Attorney-General Abubakar Malami found that the amount not collected from international oil companies stood at $62 billion.
$29 Billion Linked To Crude Oil Theft
ASCAB also urged the government to recover $29 billion allegedly linked to crude oil theft and undeclared exports.
According to the letter, lawyers engaged by the Nigerian Maritime Administration and Safety Agency (NIMASA) discovered that about 60.2 million barrels of crude oil allegedly stolen from Nigeria were discharged at ports in the United States between 2011 and 2014.
“The value of the stolen crude oil is $12.7 billion,” the letter said.
The group further alleged that a House of Representatives investigation uncovered another $17 billion worth of crude oil and liquefied natural gas exports that were not properly recorded.
“Notwithstanding the pending civil cases filed by NIMASA at the Federal High Court, you may wish to direct the EFCC to embark on the recovery of the total sum of $29 billion from the indicted oil and shipping companies because they engaged in oil theft and other acts of economic sabotage,” ASCAB stated.
$21.5 Billion NLNG Dividends Withheld by NNPCL
The coalition also accused NNPCL of withholding $21.5 billion in dividends paid by Nigeria LNG Limited (NLNG).
It noted that NNPCL owns 49 per cent of NLNG on behalf of the Federal Government and claimed that while the company had received over $21.5 billion in dividends over the years, the funds were not remitted to the Federation Account.
“Despite the resolutions of the Senate and the House of Representative as well as the recommendations of the Auditor-General of the Federation, NEITI and RMAFC, the NNPCL has failed to remit the said sum of $21.5 billion to the Federation Account contrary to section 162 of the Constitution,” the letter alleged.
ASCAB further cited findings from the Nigerian Extractive Industries Transparency Initiative (NEITI), which reportedly identified $6.071 billion and N66.4 billion in outstanding revenues owed by companies operating in the oil and gas sector.
The group expressed concern that despite the reported debts, the National Assembly approved additional external borrowing by the Federal Government.
“Instead of collaborating with NEITI to recover the said sum of $6.071 billion and N66.4 billion, both houses of the National Assembly proceeded in November 2024, to approve the request of President Bola Tinubu for another external loan of $2.1 billion to fund the 2025 budget of the Federal Government,” the letter stated.
ASCAB also questioned the rehabilitation projects for the Port Harcourt, Warri and Kaduna refineries, alleging that contractors failed to meet the terms of agreements worth about $2.9 billion.
The coalition urged the Attorney-General to petition the Economic and Financial Crimes Commission (EFCC) to recover the contract funds.
“In view of the undeniable fact that the foreign firms have breached the terms of the contracts, we urge your office to submit a petition to the Economic and Financial Crimes Commission for the recovery of the contract sum of $2.9 billion,” the letter said.
ASCAB maintained that recovering the funds would significantly improve government finances and reduce dependence on external borrowing.
“We are sure that if the said sum of $118.67 billion and N66.4 billion is recovered by your office, the Federal Government and the respective state governments will cease to incur more external loans to the detriment of the national economy,” the group stated.
The coalition also threatened legal action if the Attorney-General fails to act within two weeks.
“If you fail to initiate legal measures for the recovery of the aforesaid huge funds belonging to the Government of the Federation, within fourteen (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,” Falana wrote.
ASCAB said it had previously played a role in advocating amendments to the Deep Offshore and Inland Basin Production Sharing Contracts Act, which it argued contributed to increased government revenue.
The group expressed hope that the Attorney-General would take urgent steps to recover the funds and enforce existing court judgments and statutory obligations.
