The Nigerian National Petroleum Company Limited (NNPCL) has come under fire following revelations by the Auditor-General of the Federation of financial irregularities amounting to N2.68 trillion and $9.77 million over four years.
The findings, submitted to the National Assembly, revealed major infractions, including the diversion of N1.33 trillion from the Federation Account in 2017 and discrepancies worth N663 billion in 2019.
Despite repeated queries, the NNPCL failed to provide justification for these deductions, fueling concerns over its opaque operations.
Further scrutiny of the oil giant’s activities exposed 14 financial violations, ranging from discrepancies in crude oil sales to unauthorized deductions for purported priority projects.
For instance, the NNPCL was found to have deducted N82.95 billion for refinery rehabilitation without proper authorization in 2020 and 2021.
Another glaring anomaly was the warehousing of N83.66 billion in miscellaneous income between 2016 and 2020 in a sinking fund account, instead of remitting it to the Federation Account.
These actions have been described as a violation of Section 162 of the 1999 Constitution, which mandates all revenues to be paid into the Federation Account.
Civil society groups and anti-corruption advocates have strongly condemned the NNPCL’s lack of accountability, calling it a hub of institutional corruption.
The Centre for Anti-Corruption and Open Leadership (CACOL) lamented that powerful government interests continue to shield the corporation from scrutiny, rendering anti-graft agencies ineffective in probing its financial dealings.
Similarly, the Civil Society Legislative Advocacy Centre (CISLAC) criticized the presidency, National Assembly, and security agencies for failing to ensure the NNPCL operates transparently.
They demanded immediate sanctions against those responsible for the mismanagement of public funds.