A recent report by Nigeria’s Auditor-General has accused the Nigerian National Petroleum Company Limited of misusing funds and diverting revenue meant for the Federation in 2021, SAVANNAH NEWSNOW REPORTS.
NNPCL under Kyari was also accused of multiple financial irregularities within the national oil corporation, including an unauthorized deduction of ₦82.9 billion from federation revenue for refinery rehabilitation without requisite approvals, and recommending that the company’s Group Chief Executive Officer provide explanations and ensure the recovery and remittance of the funds to the government treasury.
Auditors revealed that ₦343.6 billion was deducted from domestic crude sales proceeds in March and May 2021 without detailed justification.
The deductions, made for purposes such as ‘NNPC Value Shortfall’ and ‘Strategic Stock Holding Cost’, were part of the ₦484.7 billion gross revenue generated, of which only ₦77 billion was remitted, leaving a ₦50 billion shortfall unaccounted for.
This breach of constitutional provisions and financial regulations was further compounded by the funneling of ₦83.6 billion from joint venture operations into a CBN/NNPC sinking fund account rather than the Federation Account, potentially forcing the government into unnecessary borrowing and fund diversion.
The report also flagged a questionable ₦3.7 billion payment related to petrol sales. Auditors found that the transaction, involving NNPC and a private company, lacked adequate documentation. This violated financial regulations that mandate comprehensive record-keeping for all public expenditure.
Following the revelations, the Socio-Economic Rights and Accountability Project (SERAP) has urged the Nigerian National Petroleum Company Limited (NNPCL) Managing Director, Mele Kyari, to account for the mismanaged funds and identify those responsible.
SERAP views the findings as a serious breach of public trust, which hinders economic growth and perpetuates poverty in Nigeria.
The group is calling for the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC) to investigate and hold accountable those found culpable.
SERAP notes that the Auditor-General’s allegations suggest a serious violation of the Constitution and anti-corruption laws.
