Falana Urges Senate: Recover $123.17 Billion Unremitted Oil Revenue

• Femi Falana, SAN, has urged Senate President Godswill Akpabio to recover $123.17 billion and N66.4 billion in unremitted oil revenues.
• These funds are allegedly owed by NNPC, international oil companies, and indigenous producers, stemming from outstanding royalties, taxes, and dividends.
• A significant portion, $62 billion, represents uncollected royalties from IOCs over 18 years, linked to the non-implementation of the Deep Offshore and Inland Basin Production Sharing Contracts Act.
• A 2018 Supreme Court consent judgment had already ordered the federal government to collect these outstanding royalties.
• Falana has given the National Assembly 14 days to initiate recovery measures, threatening legal action if they fail to comply.

This decisive move by Femi Falana SAN underscores a renewed push to recover unremitted oil revenue, highlighting the persistent challenges Nigeria faces in ensuring full compliance from oil sector players and the enforcement of existing laws and court judgments.

Prominent human rights lawyer and Senior Advocate of Nigeria, Femi Falana, has issued a stern directive to Senate President Godswill Akpabio, urging immediate action to recover substantial unremitted oil revenue totaling $123.17 billion and N66.4 billion. This demand, articulated in a letter dated October 28, 2026, and dispatched from Falana & Falana's Chambers, targets the Nigerian National Petroleum Company Limited (NNPC), various international oil companies (IOCs), and indigenous oil producers. The communication was also copied to Hon. Tajudeen Abbas, the Speaker of the House of Representatives.

The funds in question encompass a range of financial obligations, including outstanding royalties, taxes, and dividends, alongside proceeds from stolen crude and sums related to failed refinery rehabilitation contracts. These figures, according to Falana, are not speculative but are substantiated by existing judgments from competent courts and official reports from federal government agencies. The legal firm, known for its commitment to human rights, social justice, and public accountability in Nigeria, stated its motivation stemmed from the federal government's consistent failure to act on verified reports detailing significant national revenue losses.

A significant portion of the claimed amount, specifically $62 billion, pertains to uncollected royalties from IOCs over an 18-year period. This particular issue emerged from Falana & Falana's Chambers' advocacy for amendments to the Deep Offshore and Inland Basin Production Sharing Contracts Act. Their investigations revealed that certain public officials had deliberately neglected to enforce the former Section 16 of the Act, which had mandated an upward adjustment of royalties whenever the international price of crude oil surpasses $20 per barrel, before its deletion in the 2019 amendment.

The federal government had previously acknowledged the economic sabotage, admitting that billions of dollars were lost due to the non-implementation of this legal provision (the former Section 16). However, demands for the recovery of these substantial funds were reportedly disregarded without any legal justification. This inaction prompted the governments of Akwa Ibom, Bayelsa, and Rivers States to file a suit at the Supreme Court, seeking to compel the federal government to collect all outstanding royalties under the Act.

A consent judgment, delivered by the Supreme Court on October 20, 2018, explicitly ordered the federal government to collect the royalties that had accrued over 18 years under the Deep Offshore Inland Basin Production Sharing Contract Act. Furthermore, the judgment stipulated that the 13 percent derivation due to the plaintiff states, as per Section 162 of the 1999 Constitution, should be paid upon the successful recovery of these funds. Following this judicial directive, the Office of the Attorney-General of the Federation established a committee to ascertain the specific liabilities of the IOCs and the amounts owed to the oil-producing states. This committee subsequently confirmed that $62 billion had indeed not been collected from the IOCs, though the companies reportedly ignored the federal government's subsequent demands for payment.

In his communication, Falana issued a strict 14-day ultimatum to the National Assembly, urging them to initiate concrete measures for the recovery of these vast sums. The prominent legal figure warned that should the legislative body fail to commence legal proceedings for the recovery of the identified funds within this two-week period, his chambers would not hesitate to file the necessary legal processes in the Federal High Court. This action would aim to compel the Senate President and the National Assembly to fulfill their constitutional duties regarding public accountability and revenue recovery.

This decisive move by Femi Falana SAN underscores a renewed push to recover unremitted oil revenue, highlighting the persistent challenges Nigeria faces in ensuring full compliance from oil sector players and the enforcement of existing laws and court judgments.

Lawyers advising NNPC, IOCs, or indigenous oil firms in Nigeria should prepare for potential litigation or increased regulatory scrutiny regarding historical unremitted oil revenues, royalties, and dividends. This ultimatum signals a renewed push for recovery based on existing court judgments and statutes, highlighting significant financial exposure and the need for compliance review.

Source: Original reporting via legal news source