By Milcah Tanimu
A recent audit report by Nigeria’s Auditor-General has indicted the Nigerian National Petroleum Company Limited (NNPCL) for the misappropriation of funds and diversion of revenue meant for the Federation in 2021. The detailed 558-page report, released in November 2024, highlights several financial irregularities, including unauthorized deductions and missing funds.
Among the most significant findings, the report reveals that NNPCL deducted ₦82.9 billion from Federation revenue for refinery rehabilitation without proper authorization. These deductions violated Nigeria’s financial regulations and constitutional provisions regarding revenue allocation. The report recommends that the NNPCL Group CEO explain the unauthorized deductions and return the misappropriated funds to the treasury.
The audit also highlighted ₦343.6 billion in irregular deductions from domestic crude sales in 2021, which were made for unsubstantiated costs such as pipeline maintenance. The report revealed that only ₦77 billion was remitted to the Federation Account, leaving ₦50 billion unaccounted for.
Additionally, the audit pointed out the warehousing of ₦83.6 billion in miscellaneous income from NNPC joint venture operations, which was diverted into the CBN/NNPC sinking fund account instead of the Federation Account, leading to concerns over possible misappropriation.
The Auditor-General’s office also flagged a suspicious payment of ₦3.7 billion related to shortfalls in petrol cargo sales, without adequate supporting documentation, which further raised concerns about financial mismanagement.
In response, the Socio-Economic Rights and Accountability Project (SERAP) has called for accountability, urging NNPCL’s CEO to explain the whereabouts of the missing funds and for the perpetrators to be handed over to the relevant anti-corruption agencies. The audit findings have ignited a call for transparency and recovery of the misallocated funds.
