The Federal Government has dug out more than ₦60 billion linked to 28 financial irregularities in the operations of the Nigerian National Petroleum Company Limited. A breakdown of the transactions published in the Auditor-General’s 2022 Annual Report on Non-Compliance (Volume II) listed the undocumented questionable payments involving ₦30.1bn, $51.6m, £14.3m, and €5.17m – The total amounts to about ₦61.1bn when converted to naira.
The report accuses NNPC Limited of unauthorised virements, tax infractions, irregular procurement, abandoned projects, weak internal controls, and unsubstantiated settlements. The report has been transmitted to the National Assembly. “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.
Again, 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.
A breakdown of the expenditure showed personnel costs amounting to £5,943,124.74, fixed contract and essential expenses totalling £1,436,177.11, while other operational costs stood at £6,943,124.74, bringing the total to £14,322,426.59. The Issue II report, which concerns the undocumented expenditure of £14,322,426.59 at NNPC’s London Office, 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.
Despite the magnitude of the spending, the audit team noted that it was not provided with supporting documents or given access to verify how the funds were utilised. The report stated that the auditors were unable to ascertain whether the expenditure complied with due process and other requirements of the Financial Regulations. The Auditor-General warned that the failure to provide documentation points to “weaknesses in the internal control system” of NNPC Ltd, exposing the organisation to the risks of diversion and misappropriation of public funds.
