Falana-Led Group Gives AGF 14 Days to Recover $120.5 Billion, N66.4 Billion from NNPCL, Oil Firms, Threatens Legal Action

The Alliance on Surviving COVID-19 and Beyond (ASCAB), led by human rights lawyer Femi Falana (SAN), has issued a 14-day ultimatum to the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), demanding the recovery of 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, ASCAB warned that if the AGF fails to initiate legal measures within two weeks, the group would proceed to the Federal High Court to compel him to discharge his duties.

The demand is based on court judgments and reports from government agencies, which according to ASCAB established that huge sums in unpaid royalties, taxes, and dividends remain outstanding.

$62 Billion in Uncollected Royalties

The largest portion 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 noted that the Federal Government failed for years to implement provisions requiring royalty reviews when crude prices exceeded $20 per barrel. A Supreme Court consent judgment delivered on October 20, 2018, directed the government to recover the outstanding royalties accrued over 18 years.

$29 Billion Linked to Crude Oil Theft

ASCAB also urged the recovery of $29 billion allegedly linked to crude oil theft and undeclared exports. According to the group, about 60.2 million barrels of crude oil stolen from Nigeria were discharged at US ports between 2011 and 2014, valued at $12.7 billion. A House of Representatives investigation reportedly uncovered another $17 billion worth of unrecorded crude and liquefied natural gas exports.

$21.5 Billion NLNG Dividends Withheld by NNPCL

The coalition further accused NNPCL of withholding $21.5 billion in dividends paid by Nigeria LNG Limited, in which NNPCL holds 49 per cent on behalf of the Federal Government. Despite resolutions by the Senate and House, as well as recommendations from the Auditor-General, NEITI, and RMAFC, the funds were allegedly not remitted to the Federation Account.

ASCAB also cited NEITI findings identifying $6.071 billion and N66.4 billion in outstanding revenues owed by oil and gas companies. The group expressed concern that instead of recovering these debts, the National Assembly approved additional external borrowing of $2.1 billion for the 2025 budget.

The coalition also questioned the rehabilitation projects for the Port Harcourt, Warri, and Kaduna refineries, alleging that contractors failed to meet terms of agreements worth about $2.9 billion, and urged the AGF to petition the EFCC for recovery.

ASCAB maintained that recovering the funds would significantly reduce dependence on external borrowing and threatened legal action if the AGF fails to act within 14 days.