Human rights lawyer and Senior Advocate of Nigeria, Femi Falana, has issued a 14-day ultimatum to the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, demanding the initiation of recovery processes for an alleged $120.5 billion and N66.4 billion said to be owed to the Federation Account by the Nigerian National Petroleum Company Limited (NNPCL), international oil companies, and other operators in the oil and gas sector.
Falana issued the demand in a letter dated June 2, 2026, written on behalf of the Alliance on Surviving COVID-19 and Beyond (ASCAB), warning that legal action would follow if authorities fail to act within the stipulated timeframe.
He said the funds comprise outstanding royalties, unremitted revenues, proceeds of alleged crude oil theft, unpaid taxes, dividends, and monies spent on refinery rehabilitation projects.
According to him, the largest portion of the alleged debt is $62 billion in unpaid royalties, which he attributed to the non-implementation of provisions of the Deep Offshore and Inland Basin Production Sharing Contracts Act over an 18-year period.
Falana also claimed that $29 billion was lost to crude oil theft and undeclared exports between 2011 and 2014, while $21.5 billion in dividends from Nigeria LNG Limited was allegedly received by the Nigerian National Petroleum Company Limited but not remitted to the Federation Account.
He further referenced findings by the Nigerian Extractive Industries Transparency Initiative (NEITI), which reportedly indicated outstanding obligations of $6.07 billion and N66.4 billion owed by oil and gas operators.
The lawyer also called for recovery of $2.9 billion allegedly spent on the rehabilitation of the Port Harcourt, Warri, and Kaduna refineries, arguing that the projects failed to meet expected outcomes despite the funds expended.
Falana insisted that failure by the Attorney General to commence recovery action within 14 days would compel ASCAB to seek judicial intervention at the Federal High Court to enforce compliance.
He argued that recovering the funds would significantly boost national revenue, reduce reliance on borrowing, and strengthen Nigeria’s fiscal position.
The ultimatum adds to ongoing public scrutiny of Nigeria’s oil and gas revenue management, with renewed calls for transparency, accountability, and stronger oversight of sector earnings.
As of the time of filing this report, neither the Attorney General of the Federation nor the Nigerian National Petroleum Company Limited has issued a formal response to the allegations.
