Key points
- Human rights lawyer Femi Falana (SAN) has issued a 14-day ultimatum to the Attorney General of the Federation to initiate the recovery of $120.5 billion and N66.4 billion.
- The funds are allegedly owed to the Federation Account by the NNPCL, international oil companies, and other operators in the oil and gas sector.
- The largest component of the debt consists of $62 billion in outstanding royalties from international oil companies due to unimplemented production sharing contract provisions.
- Additional claims include $29 billion in alleged crude oil theft, $21.5 billion in unremitted NLNG dividends, and $2.9 billion spent on failed refinery rehabilitations.
- Falana warned that the Alliance on Surviving COVID-19 and Beyond (ASCAB) will approach the Federal High Court to compel recovery if the AGF fails to act.
Main Story
Human rights lawyer Femi Falana (SAN) has given the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), a 14-day ultimatum to initiate the recovery of $120.5 billion and N66.4 billion allegedly owed to the Federation Account.
The funds are reportedly owed by the Nigerian National Petroleum Company Limited (NNPCL), international oil companies, and other operators in the oil and gas sector.
In a letter dated June 2, 2026, written on behalf of the Alliance on Surviving COVID-19 and Beyond (ASCAB), Falana cited court judgments, government reports, and findings by oversight agencies. He claimed that the funds comprise uncollected royalties, proceeds of crude oil theft, unremitted dividends, outstanding taxes, and revenues, as well as funds expended on refinery rehabilitation projects. He warned that legal action would be instituted against the Attorney-General if steps were not taken to recover the money.
According to Falana, the largest component of the alleged debt is $62 billion in outstanding royalties owed by international oil companies. He attributed this to the Federal Government’s failure to implement provisions of the Deep Offshore and Inland Basin Production Sharing Contracts Act for 18 years. The senior lawyer also called for the recovery of $29 billion linked to alleged crude oil theft and undeclared exports between 2011 and 2014, as well as $21.5 billion in dividends from Nigeria LNG Limited (NLNG), which he claimed were received by NNPCL but not remitted to the Federation Account.
Furthermore, Falana cited a report by the Nigerian Extractive Industries Transparency Initiative (NEITI), which reportedly put outstanding revenues owed by oil and gas companies at $6.07 billion and N66.4 billion. He also urged the Federal Government to recover $2.9 billion spent on the rehabilitation of the Port Harcourt, Warri, and Kaduna refineries, alleging that the contractors failed to deliver on the projects despite receiving the funds.
The Senior Advocate of Nigeria maintained that if the Attorney-General fails to commence recovery proceedings within 14 days, ASCAB will approach the Federal High Court to compel the recovery of the funds. Falana argued that recovering the money would significantly boost government revenue, reduce reliance on external borrowing, and strengthen the country’s economy.
The Issues
- Recovering massive unremitted oil and gas revenues to boost the Federation Account and reduce national debt.
- Addressing the long-term failure to implement statutory provisions of the Deep Offshore and Inland Basin Production Sharing Contracts Act.
- Enforcing corporate and institutional accountability for funds disbursed for failed refinery rehabilitation projects.
What’s Next
- The Attorney General of the Federation will review the 14-day ultimatum and determine the government’s legal response.
- ASCAB will prepare to file a lawsuit at the Federal High Court if recovery proceedings are not commenced by June 16, 2026.
- Regulatory oversight bodies and oil firms may face renewed pressure to reconcile outstanding balances cited in past NEITI reports.
Bottom Line
Femi Falana has given the AGF a 14-day ultimatum to recover $120.5 billion and N66.4 billion in unremitted royalties, stolen crude proceeds, and failed refinery project funds from the oil sector, threatening a Federal High Court lawsuit if the government fails to act.
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