The Office of Auditor-General for the Federation (OAGF) has uncovered significant financial infractions amounting to N514 billion in the operations of the Nigerian National Petroleum Company Limited (NNPC) for the 2021 financial year. The alleged infractions include:
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- Irregular Deductions: N343.64 billion was deducted from domestic crude sales at source without providing a breakdown of the costs, violating Section 162 (1) of the Constitution.
- Unauthorised Deductions: N82.95 billion was deducted from the federation revenue for refinery rehabilitation without evidence of authorization and approvals.
- Unsubstantiated Payments: N3.75 billion was paid as a shortfall from the sale of petrol without providing details of the transaction.
- Miscellaneous Income: N83.66 billion was warehoused in a sinking fund account instead of the Federation Account, leading to a revenue shortfall of N2 trillion.
The OAGF report stated that these infractions violated the Constitution and the 2009 Act of Financial Regulations. The NNPC has not provided any response or justification for the infractions, and the report recommends that the NNPC Group Chief Executive Officer should furnish reasons for the spending to the Public Accounts Committees of the National Assembly or face sanctions ¹.
