Socio-Economic Rights and Accountability Project (SERAP) has revealed that the Nigerian National Petroleum Company Limited (NNPCL) failed to account for missing oil revenues amounting to N22.3 billion, $49.7 million, £14.3 million, and €5.2 million, according to the 2022 annual report of the Auditor-General of the Federation.
SERAP disclosed this on Sunday via its official X handle, @SERAPNigeria, citing multiple audit findings that raised concerns over unaccounted funds, irregular payments, and possible diversions within the national oil company.
According to the Auditor-General, the NNPCL in 2020 reportedly paid over N292 million [N292,609,972.29] “for a contract to construct an Accident and Emergency Facility along Airport Road, Abuja.”
However, “the contractor has abandoned the contract, and failed to execute the job, despite collecting the fee.”
The report added that “the contract money may have been diverted,” and directed that it “be recovered from the contractor and remitted to the treasury.”
In another finding, the NNPCL in 2021 allegedly spent over £14 million [£14,322,426.59] “to repair its London office,” but “there was no evidence to show that the money was actually spent, and no documents of any spending.” The Auditor-General fears “the money may have been diverted or misappropriated,” urging recovery and remittance to the national treasury.
The report further disclosed that the company “irregularly paid” over $22 million [$22,842,938.28] to a contractor “for lifting 9 cargoes of crude oil.” The NNPCL “failed to explain why the amount due to it from crude from January to October 2019 was only $4,858,997.22 and why the contractor got over $22 million for crude for the same period.” The Auditor-General fears “the money may be missing” and called for recovery.
In 2021, the NNPCL also “irregularly paid N2.3 billion [N2,379,488,622.99] as car cash option to 100 staff” without “the approval of the National Salaries, Incomes and Wages Commission,” and “without any document to show that the 100 staff applied for the cash options and any rationale for the payments.” The report said “the money may have been diverted” and must be “recovered and remitted to the treasury.”
The audit also revealed that the NNPCL “failed to deduct statutory taxes of over N247 million [N247,181,597.92] from payments made to contractors and service providers,” and similarly “failed to deduct statutory taxes of over $529,000 [$529,863.24].” The Auditor-General warned that “the money may have been diverted” and directed that it be recovered.
Further findings show the NNPCL “paid over N3 billion [N3,445,022,107.40] for various services” but “without any documents or trace.” Several other questionable payments included $1.8 million for charter hire of coastal vessels, N355 million as consultancy fees, N474 million for connecting Kaduna Refinery to the National Grid, and over $2 million and N478 million for rehabilitation of system-depot projects—all without supporting documents.
The Auditor-General also questioned payments such as $8.2 million for emergency installation of custody transfer meters, €5.1 million for operation of the Atlas Cove Jetty Facility, $1 million as legacy debt for vessel hire, and $1.9 million for inflated charter hire contracts, saying the funds “may have been diverted” and must be recovered.
Other irregularities listed include $156,000 paid to a consultant for advising on the rehabilitation of PHRC, $12.4 million for diesel generator installation at Mosimi Depot, N246 million for unexecuted pipe supply to Warri Refinery, and N12.7 billion in unremitted surplus for December 2020.
In each case, the Auditor-General “fears the money may have been diverted” and consistently “wants the money recovered and remitted to the treasury.”
SERAP, which has long advocated transparency in Nigeria’s oil sector, called on relevant authorities to act swiftly on the Auditor-General’s findings and ensure accountability within the NNPCL.