The Office of the Auditor-General for the Federation has uncovered 28 major financial irregularities linked to the Nigerian National Petroleum Company Limited, involving N30.1bn $51.6m, £14.3m, and €5.17m in questionable payments, undocumented expenditures, and breaches of financial regulations. When converted to naira, the total amount is about N61.1bn
The red flags, contained in the Auditor-General’s 2022 Annual Report on Non-Compliance (Volume II), detail transactions carried out during the 2021 financial year across the NNPCL and its subsidiaries. The document was obtained by our correspondent on Sunday.
The report, which has been transmitted to the National Assembly, accuses NNPCL of weak internal controls, unauthorised virements, tax infractions, irregular procurement, abandoned projects, and unsubstantiated settlements.
“These findings highlight systemic weaknesses that continue to expose public funds to avoidable risk. Where documents were not provided, payments were unjustified. Where approvals were absent, expenditure breached the law. Recovery and sanctions must follow,” the Auditor-General’s office said.
The latest audit revelations come against the backdrop of earlier reports by The PUNCH this year, which exposed long-running financial discrepancies involving the Nigerian National Petroleum Company Limited. The Auditor-General’s annual reports for 2017 to 2021 showed that the national oil company was previously indicted for the diversion of N2.68tn and $19.77m within a four-year period.
The breakdown includes N1.33tn flagged in 2017, N681.02bn in 2019, N151.12bn and $19.77m in 2020, and N514bn in 2021, signalling a persistent pattern of unremitted funds, unsupported transfers, and irregular withdrawals that have raised concerns about governance and accountability in the petroleum sector.
Among the most striking revelations in the new report is Issue 2, which concerns the expenditure of £14,322,426.59 at NNPC’s London Office without documentation. Auditors said the corporation failed to provide utilisation details or supporting schedules for the amount.
According to the auditor-general, Financial Regulations (2009) place strict responsibilities on all accounting officers, including ensuring adequate internal controls and proper documentation for public expenditure. Paragraph 112 mandates officers to provide clear rules and procedures to safeguard revenue.
In the same vein, Paragraph 603(1) requires every payment voucher to contain full particulars, dates, quantities, rates, and to be supported with invoices, purchase orders, letters of authority, and other relevant documents to enable verification without recourse to additional files.
However, the Auditor-General reported that these statutory provisions were breached in the operation of the Nigerian National Petroleum Company Limited’s London Office in the 2021 financial year.
According to the audit, a total of £14,322,426.59 was spent by the Foreign Office during the period under review, covering personnel costs, fixed contract expenses, and other operational needs.
