The Nigerian National Petroleum Company Limited (NNPCL) has been accused of mismanaging about N684 million on abandoned projects, unexecuted contracts, and irregular procurements, according to the 2022 Auditor-General’s annual report.
The 808-page report, recently submitted to the National Assembly, exposes systemic weaknesses in the state-owned company’s financial controls and raises serious concerns about transparency and accountability.
The audit revealed that NNPCL made payments without evidence of project execution, renewed contracts irregularly, and failed to enforce financial regulations intended to protect public funds.
In several cases, contractors were paid in full despite failing to complete work, in violation of the Nigerian Constitution and Financial Regulations 3104 and 3106 (2009), which mandate recovery of funds from non-performing contractors and referral to the Economic and Financial Crimes Commission (EFCC).
A major concern is a N533 million contract awarded in May 2020 for an Accident and Emergency Facility along Airport Road, Abuja. By September 2020, NNPCL had released N292 million covering initial milestones, yet a site visit in December 2022 found the project abandoned.
Similarly, N246 million paid for 2,400 metres of steel pipe for the Warri Refinery had only delivered 1,908 metres, while a N152 million procurement linked to the Office of the Inspector-General of Police lacked documentation.
The report blames weak internal controls and opaque practices for exposing public funds to diversion. The findings come amid EFCC investigations into 14 NNPCL officials, including former chief executives Mele Kyari and Abubakar Yar’Adua, over an alleged $2.7 billion fraud in refinery maintenance.
The Senate Committee on Public Accounts is also probing NNPCL over N210 trillion in allegedly unaccounted funds from 2017 to 2023.
The 2022 audit reinforces earlier warnings, including the 2021 report that flagged unauthorised deductions of N514 billion, and calls on NNPCL to recover missing funds and strengthen oversight to safeguard public resources.
