The Nigerian National Petroleum Company Limited (NNPCL) is facing serious allegations from the Auditor-General of the Federation regarding significant financial misconduct that has adversely affected Nigeria's financial stability.
According to findings, the NNPCL has reportedly diverted a staggering N2.68 trillion and $9.77 million over the past four years, with specific amounts of N1.33 trillion in 2017, N681.02 billion in 2019, N151.12 billion in 2020, and N514 billion in 2021.
These findings are based on the Auditor-General's annual reports from 2017 to 2021, which were submitted to the National Assembly and indicate multiple violations of Nigeria's Constitution and financial regulations.
Notably, the NNPCL has failed to respond or justify these infractions, raising concerns about its adherence to corporate governance standards.
International bodies like the World Bank have criticized the NNPCL for its lack of transparency. The World Bank's recent Nigeria Development Update highlighted ongoing issues related to subsidy arrears and their impact on national revenues.
Former Central Bank Governor Sanusi Lamido previously labeled the NNPC as "the most opaque oil company in the world," criticizing its insufficient foreign exchange remittances and lack of public disclosure regarding joint ventures and oil-backed loans.
The Auditor-General's report identifies 14 financial infractions attributed to the NNPCL, including unauthorized deductions totaling N1.33 trillion from the federation account and discrepancies amounting to N663 billion in reported transfers.
The report emphasizes that these actions violate Section 162(1) of Nigeria's Constitution, which mandates that all government revenues be deposited into a designated Federation Account.
In 2019 alone, seven major infractions were uncovered, revealing that the NNPCL remitted only N519.92 billion out of an accrued revenue of N1.27 trillion, resulting in a significant discrepancy with recorded remittances.
The audit further noted that substantial quantities of crude oil were lifted without proper documentation, raising alarms about potential mismanagement...
