Falana Urges Senate to Recover $123bn, N66.4bn Oil Revenues

Human rights lawyer, Femi Falana, has urged the National Assembly to compel the Federal Government to recover $123.17bn and N66.4bn in outstanding oil revenues from the Nigerian National Petroleum Company Limited (NNPC) and other companies.

Falana warned that he would approach the Federal High Court if the authorities failed to initiate recovery measures within 14 days of receiving his letter.

In a letter dated October 28, 2026, and addressed to the National Assembly, the Senior Advocate of Nigeria demanded the recovery of unpaid royalties, unremitted dividends, taxes and other revenues due to the Federation Account.

He said the outstanding funds covered several categories, including $62bn in unpaid oil royalties, $23.1bn in alleged unremitted dividends from Nigeria LNG Limited (NLNG), and $6.071bn in industry revenues.

The demand also covers $29bn allegedly lost through crude oil theft and undeclared exports, as well as funds linked to the rehabilitation of the Port Harcourt, Warri and Kaduna refineries.

On the unpaid royalties, Falana cited a Supreme Court consent judgment delivered on October 20, 2018, which directed the Federal Government to collect outstanding royalties accrued over 18 years under the Deep Offshore and Inland Basin Production Sharing Contracts Act.

He said Akwa Ibom, Bayelsa and Rivers states had approached the Supreme Court to enforce the law. The legislation provides for increased royalties when international crude oil prices exceed $20 per barrel.

According to Falana, a committee constituted by the Office of the Attorney-General of the Federation subsequently established that international oil companies owed $62bn in outstanding royalties.

He added that Akwa Ibom and Rivers states later obtained a Federal High Court judgment for a combined $3.3bn. Bayelsa also secured a separate judgment for $951m.

However, he alleged that the Federal Government had failed to enforce the judgments and collect the outstanding funds.

Falana also called for the recovery of $29bn linked to crude oil theft and undeclared exports. He cited investigations by the Nigerian Maritime Administration and Safety Agency (NIMASA) and the House of Representatives.

He said lawyers engaged by NIMASA discovered that about 60.2 million barrels of crude oil, valued at $12.7bn, allegedly stolen from Nigeria, were discharged at the Port of Philadelphia in the United States between 2011 and 2014.

According to him, the lawyers submitted their findings to the Attorney-General’s office before filing nine civil suits at the Federal High Court in Abuja and Lagos.

The suits sought to recover the value of the alleged stolen crude oil and liquefied gas.

He also cited a 2016 investigation by a House of Representatives ad hoc committee, which reportedly uncovered $17bn worth of crude oil and liquefied natural gas exports without proper records.

The committee, he said, traced the shipments to the ports of Houston and Lake Charles in the United States.

Falana urged the National Assembly to direct the Economic and Financial Crimes Commission to pursue the recovery of the funds from companies allegedly involved.

On the NLNG dividends, the lawyer accused NNPC of failing to remit $23.1bn due to the Federal Government from its 49 per cent stake in the company.

He explained that NLNG, established in 1989, had paid more than $47bn in dividends to its shareholders over 26 years.

The shareholders include NNPC, which holds 49 per cent; Shell, 25.6 per cent; TotalEnergies, 15 per cent; and Eni International, 10.4 per cent.

Falana argued that NNPC should have transferred the Federal Government’s dividend earnings to the Federation Account under Section 162 of the 1999 Constitution, as amended.

He also alleged that the Senate and House of Representatives had passed resolutions demanding the remittance of the funds without securing compliance.

The senior lawyer further demanded the recovery of $6.071bn and N66.4bn in outstanding payments from oil and gas companies.

He based the demand on the Nigerian Extractive Industries Transparency Initiative’s (NEITI) 2022/2023 Independent Oil and Gas Industry Report.

Falana said NEITI disclosed on September 27, 2024, that collectible revenues owed to the Federal Government stood at the stated amounts as of June 2024.

He added that the agency forwarded copies of the report to both chambers of the National Assembly in November 2024, in line with the NEITI Act.

He urged lawmakers to work with the agency to recover the outstanding revenues.

Falana also questioned the outcome of the rehabilitation contracts for the Port Harcourt, Warri and Kaduna refineries.

He recalled that the Federal Executive Council approved about $2.98bn for the projects in 2021.

The government approved $1.5bn for the Port Harcourt refineries in April 2021. It subsequently approved another $1.48bn for the Warri and Kaduna facilities in August.

He noted that NNPC announced in December 2024 that work on the Port Harcourt and Warri refineries had been substantially completed. The company also said the Kaduna project was nearing completion.

However, Falana cited NNPC’s subsequent announcement that the Warri refinery stopped operations on January 25, 2025, following safety concerns involving its crude distillation unit’s main heater.

He also recalled that the Port Harcourt refineries shut down for scheduled maintenance in May 2025.

The lawyer argued that the contractors had breached their rehabilitation agreements and urged the government to recover 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,” he wrote.

Falana said recovering the funds would reduce the country’s dependence on foreign borrowing and provide additional resources for the Federal Government and state governments.

He gave the authorities 14 days to commence recovery measures, warning that he would institute legal proceedings if they failed to act.

He said his law firm had the standing to pursue the matter, citing its previous involvement in the amendment of the Deep Offshore and Inland Basin Production Sharing Contracts Act.

Falana recalled that his firm drafted and submitted an amendment bill in 2017, which a senator subsequently sponsored in the Senate.

Although the bill passed first reading before the dissolution of the Eighth National Assembly, the Ninth National Assembly later adopted and passed the amendment.

He recalled that former Senate President, Ahmad Lawan, had said the amendment would increase Nigeria’s revenue by at least $1.5bn annually.