The Federal Government of Nigeria has uncovered more than ₦60 billion in financial irregularities within the Nigerian National Petroleum Company Limited (NNPC). The Auditor‑General’s 2022 Annual Report on Non‑Compliance lists undocumented, questionable payments amounting to ₦30.1 billion, $51.6 million, £14.3 million and €5.17 million. The report attributes these losses to systemic weaknesses and poor internal controls that expose public funds to unnecessary risk.
According to the audit, NNPC engaged in unauthorized virements, tax infractions, irregular procurement, abandoned projects and unsubstantiated settlements. A large share of the irregularities stems from procurement violations, such as inflated variations, irregular vessel substitutions and emergency procurements lacking justification. The audit also flagged payments made without supporting documents, including $22.8 million in unsubstantiated Direct Sales Direct Payment settlements and $12.4 million for delayed generator procurement.
The Auditor‑General’s office has recommended the recovery of all unsupported payments, the remittance of withheld statutory surpluses, and sanctions against officers responsible for the violations. The report has been transmitted to the National Assembly, and the Auditor‑General has urged the Group Chief Executive Officer of NNPC to appear before the Public Accounts Committees to explain the use of the funds. Full recovery and remittance of the amounts to the Treasury have been directed, with penalties to be imposed on responsible officers if the funds are not recovered.
In response, NNPC stated that its London Office operates as a service unit with an approved annual budget and that the £14.32 million allocated for 2021 was implemented in line with operational and financial requirements. The Auditor‑General rejected this explanation as unsatisfactory.
The discovery of these irregularities underscores the need for stronger internal controls and greater transparency within NNPC. The Auditor‑General’s office emphasized the importance of promptly and accurately remitting all statutory deductions and establishing clear rules and procedures to safeguard revenue. The findings have significant implications for government revenue and public trust, and further investigations and corrective actions are expected to address the identified weaknesses in NNPC’s internal control system.
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