Call for Federal Action on Unpaid Oil Revenue
In a letter dated June 3, 2026, Mr. Femi Falana, a prominent legal practitioner, urged Attorney General and Minister of Justice Lateef Fagbemi (SAN) to address outstanding revenue issues. Falana, acting on behalf of the Alliance to Survive Through COVID-19 (ASCAB), highlighted the federal government’s ongoing failure to recover substantial funds from international oil companies as mandated by law.
Supreme Court Ruling Ignored
Despite a Supreme Court ruling in 2018 that ordered the federal government to action on recovering these funds, the government has remained inactive for 18 years. As stipulated in Section 16 of the Deepwater Inland Production Sharing Agreement Act, the funds generated from deepwater offshore and inland basin operations are critical to national revenue.
State Governments Take Legal Initiative
Mr. Falana noted that the state governments of Akwa Ibom, Bayelsa, and Rivers have initiated actions in the Supreme Court to compel the federal government to take necessary steps. He added that similar cases are underway in other high courts throughout the nation, emphasizing the urgent need for legal enforcement of federal obligations.
Legal Action Threatened
In his correspondence, Falana warned that if no legal actions are initiated to reclaim the significant funds owed to the Federation Government within 14 days, he would not hesitate to start proceedings in the Federal High Court. This move aims to ensure adherence to Article 287 of the Constitution and other pertinent legislation.
Escalating Revenue Loss
Falana’s letter also shed light on alarming statistics regarding the loss of crude oil revenue. Between 2011 and 2014, over $62 billion, amounting to 60.2 million barrels, was reportedly stolen and processed at the U.S. port of Philadelphia. This information came to light through investigations commissioned by the Nigerian Maritime Authority and Safety Agency (NIMASA). Furthermore, a 2016 report from the House of Representatives revealed that $17 billion worth of oil and liquefied natural gas was exported without proper documentation.
Debt Burden on Oil and Gas Sector
The legal expert pointed out that the oil and gas sector is encumbered with debts totaling approximately $6.171 billion and 66.4 billion Norwegian Naira. On September 27, 2024, the Nigeria Extractive Industries Transparency Initiative (NEITI) disclosed that as of June 2024, the sector owed recoverable revenue amounts to $6.071 billion and 66.4 billion Norwegian Naira to the federal government.
Port Refinery Rehabilitation Contracts Approved
Moreover, Falana referenced a substantial contract approved by the Federal Executive Council (FEC) in April 2021, which amounts to $2.9 billion for the rehabilitation of the Port Harcourt, Kaduna, and Warri refineries. The contracts were segmented into $1.5 billion for the Port Harcourt refinery and $1.48 billion for the Warri and Kaduna refineries, with work scheduled to be completed in three phases over 33 months.
