By Erewunmi Peace

Nigeria’s Auditor-General has uncovered a series of financial irregularities involving more than $51 million paid by the Nigerian National Petroleum Company Limited (NNPCL) to contractors under what the audit describes as “questionable circumstances.”

The revelations are contained in the Auditor-General’s 808-page report, which highlights widespread weaknesses in financial controls, contract execution, and compliance with statutory regulations at the national oil company.

According to the report, NNPCL made several foreign-currency payments to contractors without proper documentation, failed to deduct mandatory taxes, and disbursed funds for projects that were either abandoned, poorly executed, or carried out without approval.

Key Findings from the Audit

1. Over $52.9 million paid without proper tax deductions
   The Auditor-General noted that NNPCL failed to deduct the required 1% stamp duty on payments amounting to $52.98 million and N24.7 billion, in violation of financial regulations.
2. Unverified and questionable contract payments
   The report highlights millions of dollars paid for projects with no supporting documents, including:

$2.01 million and N478.5 million paid for the Atlas Cove Depot Optimisation project without invoices or receipts.

$1.8 million released for the hire of coastal vessels before receiving formal approval.

$22.84 million linked to Direct Sales Direct Purchase (DSDP) crude contracts that auditors say remain unreconciled.

3. Payments for abandoned projects
   Several contracts were flagged as abandoned despite significant disbursements.
   One example is the Accident and Emergency Centre in Abuja, where N292 million was paid out even though auditors found the project site deserted.
4. Partial delivery of contract materials
   In another case, auditors discovered that out of 2,400 metres of carbon steel pipes paid for, only 1,908 metres had been supplied by the time of inspection.

Recovery and Accountability Demanded

The Auditor-General has directed the NNPCL Group Chief Executive Officer to provide evidence of remittances, proper documentation, and explanations to the Public Accounts Committee of the National Assembly.

The report also recommends that all questionable sums be recovered and that NNPCL strengthen its internal controls to prevent future violations.

NNPCL Yet to Issue a Detailed Public Response

While some explanations were offered during the audit process, the report notes that several justifications were insufficient or not supported with evidence. As of press time, NNPCL has not issued a comprehensive official response to the latest findings.

The audit has intensified calls for greater transparency and accountability within Nigeria’s oil sector, which remains the backbone of the national economy.