Nigerians Demand Answers As FG Unveils Financial Mismanagement At NNPC Details

the diversion of ₦2.68 trillion and $9.77 million over the past four years. These allegations have drawn widespread criticism, further tarnishing the company’s financial reputation and impacting Nigeria’s economic standing.

Allegations of Diversion

According to the Auditor-General’s annual reports from 2017 to 2021, reviewed by Sunday PUNCH, NNPCL engaged in substantial financial infractions. The breakdown of alleged diversions includes:

2017: ₦1.33 trillion from ₦2.41 trillion revenue, leaving only ₦1.07 trillion in the federation account.
2019: ₦681.02 billion.
2020: ₦151.12 billion and $19.77 million.
2021: ₦514 billion.

These actions reportedly violated Nigeria’s Constitution and the 2009 Financial Regulations Act, with the reports submitted to the National Assembly citing NNPCL’s failure to provide adequate justifications or responses.

Governance Criticism

The NNPCL has faced sharp criticism from global organizations and prominent figures:

The World Bank described the company as lacking transparency in its financial practices, particularly regarding subsidy arrears and their impact on national revenues.
Former Central Bank Governor Sanusi Lamido labeled NNPCL as “the most opaque oil company in the world.”

Financial Infractions Identified

The audit highlighted 14 key financial violations, including:

Unauthorized deductions of ₦1.33 trillion from the federation account.
Unexplained discrepancies in transfers worth ₦663 billion.
Incomplete reporting of crude oil allocations.
Failure to document crude oil losses adequately.

These findings underscore longstanding concerns about NNPCL’s adherence to good corporate governance and financial transparency, intensifying calls for accountability within Nigeria’s oil and gas sector.