A damning report by Nigeria’s Auditor-General has accused the Nigerian National Petroleum Company Limited (NNPCL) of misappropriating funds and diverting revenue meant for the Federation in 2021.
The comprehensive 558-page report, released in November 2024 and recently submitted to the National Assembly, highlights multiple financial irregularities within the national oil corporation.
Central to the allegations is the unauthorized deduction of ₦82.9 billion from federation revenue, purportedly for refinery rehabilitation. According to the report, this deduction was made without requisite approvals, violating Section 162 (1) of the 1999 Constitution and relevant financial regulations. The Auditor-General recommended that NNPCL’s Group Chief Executive Officer (GCEO) provide explanations to the Public Accounts Committees of the National Assembly and ensure the recovery and remittance of the funds to the government treasury.
Irregular Deductions of ₦343 Billion
The report further revealed that ₦343.6 billion was unilaterally deducted from domestic crude sales proceeds in March and May 2021. The deductions, labeled for “NNPC Value Shortfall,” “Strategic Stock Holding Cost,” and other purposes, lacked detailed justification. Of the ₦484.7 billion gross revenue generated, only ₦77 billion was remitted, leaving a ₦50 billion shortfall unaccounted for. These actions, auditors stated, breached constitutional provisions and financial regulations.
Warehousing of ₦83.6 Billion Miscellaneous Income
Auditors expressed concern over ₦83.6 billion from joint venture operations being funneled into a CBN/NNPC sinking fund account rather than the Federation Account. The report warned that this practice forced the government into unnecessary borrowing and potentially led to fund diversion.
Unexplained Payments of ₦3.7 Billion
The report also flagged a questionable ₦3.7 billion payment related to petrol sales. Auditors found that the transaction, involving NNPC and a private company, lacked adequate documentation. This violated financial regulations that mandate comprehensive record-keeping for all public expenditure.
SERAP Demands Accountability
Reacting to the revelations, the Socio-Economic Rights and Accountability Project (SERAP) urged NNPCL’s GCEO, Mele Kyari, to account for the funds and identify those responsible for the mismanagement. SERAP described the findings as a gross violation of public trust that undermines economic growth and traps Nigerians in poverty.
“The grim allegations by the Auditor-General suggest a grave breach of the Constitution and anti-corruption laws,” SERAP stated, calling for the involvement of the ICPC and EFCC in holding those culpable accountable.
As of the time of this report, NNPCL spokesperson Olufemi Soneye had not responded to calls or messages seeking comment.
(With additional from Premium Times)
