A major financial controversy is brewing within Nigeria’s oil sector. The Auditor-General of the Federation has leveled serious accusations against the Nigerian National Petroleum Company Limited (NNPCL).
The audit body is demanding answers for £14.3 million (approximately N27 billion). This sum was spent by the company’s London office in 2021 without a clear paper trail.
The controversy stems from the 2022 audit report. The document paints a picture of regulatory failure and a disregard for due process. For auditors, the London office has become a “black box” where public funds entered but could not be traced.
A Financial Black Hole
When audit officials attempted to review the London office’s books, they faced a wall of silence. The report reveals that NNPCL failed to provide supporting documents for the £14.3 million expenditure.
Without invoices, purchase orders, or vouchers, auditors could not verify how the money was used. They noted that this lack of transparency violates the nation’s Financial Regulations. These rules mandate that every kobo of public spending must be backed by dates, numbers, and quantities.
The Auditor-General issued a stark warning. He stated that such opacity creates a breeding ground for the “diversion and misappropriation of public funds.” He attributed this anomaly to systemic weaknesses in the oil giant’s internal controls.
The NNPCL’s Defense
Facing these allegations, NNPCL management mounted a defense. They insisted that the London office is a legitimate service unit operating under an approved annual budget.
According to the company, they spent the £14.3 million in line with operational requirements. They claimed the funds were fully captured in the office’s internal ledgers.
Furthermore, the oil firm pushed back against the audit findings. They argued that the queries were too vague.
“Without specific references or documentation requirements, it is challenging to provide tailored evidence,” the management stated. They claimed that records exist and could be made available upon request.
The Verdict: Refund or Face Sanctions
The Auditor-General was unconvinced by these explanations. Dismissing the defense as insufficient, the audit office issued a stern directive.
They ordered the NNPCL Group Chief Executive Officer to recover the entire £14.3 million and remit it to the national treasury.
The ultimatum came with a threat of heavy sanctions. The Auditor-General cited specific regulations regarding irregular payments. He made it clear that spending public funds without receipts is unacceptable.
A Pattern of Opacity
This incident is not an isolated case. It is the latest chapter in a long saga of financial questions surrounding the national oil company.
The same audit report flagged other irregularities:
- $51 Million: Accusations of misappropriation involving inflated contracts between 2020 and 2021.
- Abandoned Projects: Hundreds of millions of Naira reportedly sunk into unexecuted contracts.
For decades, the firm operated without publishing audited accounts. While this has changed recently, questions of accountability persist. From legislative probes to missing funds, the spotlight remains firmly fixed on how Nigeria’s oil wealth is managed.
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