How NNPCL diverted N2.68tn, $9.77m – Auditor General’s reports

A new report by the Auditor-General of the Federation has accused the Nigerian National Petroleum Company Limited (NNPCL) of diverting N2.68 trillion and $9.77 million over a four-year period, in violation of constitutional and financial regulations.

The findings, based on Auditor-General reports from 2017 to 2021, revealed that NNPCL allegedly diverted N1.33 trillion in 2017, N681.02 billion in 2019, N151.12 billion and $19.77 million in 2020, and N514 billion in 2021. These infractions have reportedly impacted the nation’s financial standing.

The reports, submitted to the National Assembly, highlighted 14 financial irregularities by NNPCL, including unauthorized deductions from the Federation Account, discrepancies in transferred funds, and incomplete information on crude oil allocations and losses. Despite being flagged, the national oil firm reportedly failed to justify or address these concerns during the review period.

The Auditor-General identified violations of Section 162 (1) of the 1999 Constitution, which mandates that all federal revenues be paid into the Federation Account. For instance, in 2017, NNPCL deducted N1.33 trillion from revenue totaling N2.41 trillion without authorization, leaving only N1.07 trillion for allocation to the government.

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By 2019, the report noted a discrepancy of N663.89 billion between the amounts reported by NNPC-NAPIMS (its petroleum investment management subsidiary) and the Accountant-General of the Federation. Documents detailing crude oil allocations and sales for that year were also reportedly not provided.

In 2020, the Auditor-General flagged N151.12 billion deducted by NNPCL from oil royalties without sufficient justification. Meanwhile, in 2021, the company was accused of unilaterally deducting N343.64 billion from crude sales for operational costs, providing no breakdown or audit trail.

Criticism and Call for Accountability
The Centre for Anti-Corruption and Open Leadership (CACOL) and the Civil Society Legislative Advocacy Centre (CISLAC) condemned the corporation’s lack of transparency. CACOL Executive Director Debo Adeniran described the NNPCL as “a hub of institutional corruption,” alleging its operations are shielded by powerful interests.

“The NNPCL has always been a source of liquid enrichment for government officials, even before its conversion to a limited liability company. Its operations remain shrouded in secrecy,” Adeniran said.

CISLAC Executive Director Musa Rafsanjani also criticized the government, including President Bola Tinubu and the National Assembly, for failing to hold NNPCL accountable. He urged the president and lawmakers to adopt stronger measures to ensure transparency and prevent the diversion of public funds.

Recommendations
The Auditor-General’s reports called for immediate action, including stricter oversight of the NNPCL’s financial dealings. It recommended that unauthorized deductions from the Federation Account be stopped and any such payments be sanctioned. Additionally, security agencies were urged to tackle crude oil diversion and other financial anomalies in the sector.

(PUNCH)