Human rights lawyer Femi Falana, SAN, has called on the National Assembly leadership to recover more than $123 billion and N66.4 billion he says are owed to the Federation Account by the Nigerian National Petroleum Company Limited and other oil and gas firms.
In a letter dated October 28, 2026, addressed to the Senate President and copied to the Speaker of the House of Representatives, Falana urged authorities to begin recovery measures within 14 days or face legal action at the Federal High Court. He said the sums cover unpaid oil royalties, proceeds of alleged crude oil theft, undeclared exports, unremitted dividends, taxes and other outstanding revenues.
Falana listed five main categories of claims, citing court judgments, government reports and legislative findings.
He put uncollected royalties at about $62 billion over 18 years, arising from the non-implementation of the Deep Offshore and Inland Basin Production Sharing Contracts Act. He referred to a Supreme Court consent judgment of October 20, 2018, that directed the Federal Government to collect the royalties and pay oil-producing states their 13 per cent derivation share. Subsequent Federal High Court judgments awarded Akwa Ibom and Rivers states a combined $3.3 billion and Bayelsa State $951 million. Falana said the government has yet to comply.
On alleged crude oil theft and undeclared exports, he cited a report by Nigerian lawyers engaged by the Nigerian Maritime Administration and Safety Agency that identified about 60.2 million barrels, valued at $12.7 billion, discharged at a Philadelphia port between 2011 and 2014. He also pointed to a House of Representatives ad hoc committee finding that oil and gas exports worth $17 billion were shipped without proper records in the same period. Falana called for recovery of the combined $29 billion while noting that related civil cases filed by NIMASA remain pending in court.
He further alleged that NNPCL has failed to remit $23.1 billion in dividends from the Federal Government’s 49 per cent stake in Nigeria LNG Limited. According to the letter, NLNG paid more than $47 billion in dividends to shareholders over 26 years, with the government’s share channelled through NNPCL. Falana said the non-remittance violates Section 162 of the 1999 Constitution and that National Assembly resolutions demanding the funds have not been implemented.
The letter also referenced the Nigerian Extractive Industries Transparency Initiative’s 2022/2023 oil and gas report, which put outstanding collectible revenues at $6.071 billion and N66.4 billion as of June 2024. Falana urged the National Assembly to support NEITI in recovering those amounts.
On the refineries, he called for recovery of about $2.9 billion paid under rehabilitation contracts. The Federal Executive Council approved $1.5 billion for the Port Harcourt refineries in April 2021 and $1.48 billion for Warri and Kaduna in August 2021. Citing NNPCL’s later claims about the plants’ operational status, Falana alleged the foreign contractors breached their contracts and urged the Economic and Financial Crimes Commission to investigate and recover the sums so competent firms can complete the work.
Falana argued that recovering the funds would reduce the need for further foreign borrowing by the federal and state governments. He said his firm has standing to sue, having helped prepare the bill that amended the Deep Offshore and Inland Basin Production Sharing Contracts Act, which the National Assembly later passed.
The letter’s totals contain an apparent discrepancy: the heading and opening paragraphs refer to $123.17 billion while the concluding paragraph cites $118.67 billion, together with N66.4 billion. The figures are presented as claims requiring recovery and have not been independently verified.
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