An audit by the Office of the Auditor-General for the Federation has uncovered over ₦61.1 billion in payment breaches at the Nigerian National Petroleum Company Limited (NNPCL), citing 28 major financial irregularities including questionable payments, undocumented expenditures, tax infractions, and procurement violations
Details of the Audit
According to the 2022 Annual Report on Non-Compliance (Volume II), which reviewed the 2021 financial year, auditors flagged 28 major infractions across NNPCL and its subsidiaries. These included unauthorized virements, irregular procurement processes, abandoned projects, and questionable payments in both local and foreign currencies.
The report revealed that NNPCL made ₦30.1 billion in local currency payments without proper documentation. In addition, auditors identified foreign transactions amounting to $51.6 million, £14.3 million, and €5.17 million that lacked supporting evidence or violated financial regulations.
Systemic Weaknesses
The Auditor-General’s office accused NNPCL of operating with weak internal controls that expose public funds to risk. The report noted that the company failed to comply with financial regulations governing public enterprises, making it difficult to trace payments and contracts.
Auditors also highlighted tax violations and unsubstantiated settlements, warning that such practices undermine Nigeria’s fiscal stability. The breaches, they argued, reflect a culture of poor accountability and disregard for due process within the petroleum sector.
Political and Economic Implications
The findings have already been submitted to the National Assembly, where lawmakers are expected to demand explanations from NNPCL’s management. Analysts say the revelations could intensify calls for reforms in the oil sector, which remains Nigeria’s primary source of revenue.
With oil prices fluctuating and Nigeria facing mounting debt, the exposure of ₦61bn in irregular payments is seen as a major blow to public trust. Civil society groups have warned that unless systemic reforms are enforced, corruption and mismanagement will continue to drain national resources.
Public Reaction
The audit has sparked outrage among Nigerians, many of whom view NNPCL as a symbol of entrenched corruption. Advocacy groups have urged President Bola Tinubu’s administration to act decisively, arguing that the breaches highlight why Nigeria struggles to fund critical infrastructure and social programs despite its oil wealth.
Some commentators have called for the prosecution of officials implicated in the audit, while others argue that the government must prioritize transparency and digital monitoring systems to prevent future violations.
Next Steps
The Auditor-General recommended that NNPCL strengthen its internal controls, comply strictly with financial regulations, and provide detailed explanations for the flagged transactions. The report also urged the National Assembly to exercise its oversight powers more vigorously, ensuring that public enterprises are held accountable.
Whether these recommendations will be implemented remains uncertain. Past audits have often been ignored, with little or no consequences for those implicated. Observers say the coming months will test Nigeria’s resolve to confront corruption in its most lucrative sector.
