The Office of the Auditor-General for the Federation has uncovered major financial irregularities at the Nigerian National Petroleum Company Limited (NNPC Ltd), totalling over N61 billion. The 2022 Annual Report on Non-Compliance identified 28 questionable transactions during the 2021 financial year, including unauthorized payments, undocumented expenditures, and breaches of financial regulations across NNPC Ltd and its subsidiaries. The findings were submitted to the National Assembly, signaling renewed concerns about accountability in Nigeria’s oil sector.
Among the most significant issues is the £14.3 million spent by NNPC’s London Office without proper documentation. Auditors noted that the company failed to provide detailed breakdowns of personnel costs, contracts, and operational expenses. The Auditor-General stressed that these gaps reveal systemic weaknesses in internal controls, potentially exposing public funds to misappropriation and mismanagement. NNPC management, however, insists the expenditures followed approved budgets and claims detailed records are available.
The audit also flagged irregular payments in dollars and euros, including $22.8 million in unsubstantiated direct sales settlements, $12.4 million for delayed equipment procurement, and €5.17 million paid to contractors without evidence of engagement. On the naira side, the report highlighted unauthorized disbursements, unremitted statutory deductions, and abandoned projects, amounting to over N30 billion. These breaches, the Auditor-General noted, contravene statutory requirements and undermine government revenue collection.
Experts and civil society organizations have condemned the findings, describing NNPC Ltd as a hub of institutional corruption. Debo Adeniran of the Centre for Anti-Corruption and Open Leadership criticized the lack of transparency despite reforms under the Petroleum Industry Act, while Musa Rafsanjani of the Civil Society Legislative Advocacy Centre urged the government and security agencies to tackle entrenched corruption within the company.
The audit report recommended the immediate recovery of all unsupported payments, the remittance of withheld statutory surpluses, and sanctions against responsible officers. It also called for the NNPC Ltd Group CEO to appear before the Public Accounts Committee to account for the London Office expenditures. As the company transitions into a fully commercial entity, these revelations underscore the urgent need for robust internal controls and stronger governance to restore public trust in Nigeria’s oil industry.
source: punch