Falana gives Senate 14 days to recover $123bn in oil funds
- Femi Falana has written to the Senate demanding recovery of $123.17bn and N66.4bn from NNPC and oil firms.
- He says the money covers unpaid royalties, NLNG dividends, alleged stolen crude and refinery contracts.
- Falana warns he will go to the Federal High Court if nothing is done within 14 days.
Human rights lawyer Femi Falana has asked the National Assembly to push for the recovery of $123.17bn and N66.4bn that he says the Nigerian National Petroleum Company Limited (NNPCL) and other oil and gas companies owe the Federation Account.
In a letter dated 28 October 2026, addressed to the Senate President and copied to the Speaker of the House of Representatives, Falana said the money covers unpaid oil royalties, alleged crude oil theft, unremitted dividends, taxes and other revenues.
He warned that if recovery steps are not started within 14 days of the letter being received, his firm will file a case at the Federal High Court to force the authorities to act.
The claims have not been independently verified, and NNPCL has not responded publicly to the letter.
What the letter lists
Falana said about $62bn in royalties was never collected from international oil companies over 18 years under the Deep Offshore and Inland Basin Production Sharing Contracts Act. He cited a Supreme Court consent judgment of 20 October 2018 directing the Federal Government to collect the money and pay oil-producing states their 13 per cent derivation.
He said Akwa Ibom and Rivers states later won a combined $3.3bn judgment at the Federal High Court, while Bayelsa got $951m, and that the Federal Government has not complied.
On crude theft, he pointed to lawyers engaged by the Nigerian Maritime Administration and Safety Agency (NIMASA), who he said traced about 60.2 million barrels worth $12.7bn to the Port of Philadelphia in the United States between 2011 and 2014. He also cited a House of Representatives ad hoc committee that he said found $17bn of crude and liquefied natural gas exports shipped without proper records. Together he put those claims at $29bn, noting that NIMASA's civil cases are still pending in court.
Falana further alleged that NNPCL failed to remit $23.1bn in dividends from the Federal Government's 49 per cent stake in Nigeria LNG Limited. He said NLNG has paid over $47bn in dividends in 26 years, and argued that keeping the money back breaches Section 162 of the 1999 Constitution.
He also cited the Nigerian Extractive Industries Transparency Initiative (NEITI) 2022/2023 report, which he said put outstanding collectible revenue at $6.071bn and N66.4bn as of June 2024.
On the refineries, he asked the Economic and Financial Crimes Commission (EFCC) to investigate and recover about $2.9bn paid for rehabilitating the Port Harcourt, Warri and Kaduna refineries. The Federal Executive Council approved $1.5bn for Port Harcourt in April 2021 and $1.48bn for Warri and Kaduna that August. Falana said the contractors breached their agreements, pointing to the Warri refinery shutting down in January 2025 over safety issues and Port Harcourt going off for maintenance in May 2025.
The letter's figures do not quite add up: its heading and opening cite $123.17bn, while the closing paragraph says $118.67bn.
Why it matters
Falana argues that recovering the money would cut how much the Federal Government and states borrow abroad, freeing up funds at a time when many Nigerians are feeling the pinch of high prices.
It is now up to the Senate and House to decide whether to act. If they do not, the matter could move to the Federal High Court within weeks.