The Auditor-General of the Federation has accused the Nigerian National Petroleum Company Limited (NNPCL) of failing to account for £14.3 million, spent on its London office during the 2021 financial year.
The allegation is contained in the Auditor-General’s 2022 report, which shows the regulatory failures, weak internal controls, and a disregard for due process at the national oil company. Auditors stated they were not provided with the necessary documentation to confirm the utilization of the funds.
NNPCL has a long history of being criticized for opaque financial operations. It only began publishing audited accounts in 2020 after 43 years of secrecy. The latest report comes as NNPCL is undergoing a transition under the Petroleum Industry Act (PIA) to operate as a commercial, limited liability company.
Accountability issues persist, with the company currently under separate probes by the Economic and Financial Crimes Commission (EFCC) and the Senate over billions of dollars and trillions of Naira in alleged financial discrepancies.
The Auditor-General warned that the lack of transparency creates risks, including the diversion and misappropriation of public funds, attributing the anomaly to weaknesses in the internal control system at NNPC.
NNPCL management insisted that the expenditure was legitimate;
The approved budget for 2021, amounting to £14.3 million, was executed in line with operational and financial requirements and accounted for in the London Office’s books of accounts
They argued that the audit findings lacked specific transaction references.
Failure to provide comprehensive documentation or recover the funds will likely escalate the matter to the National Assembly’s Public Accounts Committees, further complicating the company’s efforts to project a reform-oriented corporate image to international stakeholders.
Leave a comment