Audit report indicts NNPCL of diverting N514 billion

 Audit report indicts NNPCL of diverting N514 billion

A recent audit by Nigeria's Auditor-General has uncovered significant financial irregularities within the Nigerian National Petroleum Company Limited (NNPCL), revealing the diversion of ₦514 billion from the nation's coffers.



Unauthorized Deductions for Refinery Rehabilitation

The audit highlights that NNPCL deducted ₦82.9 billion from crude oil and gas sales in 2020 and 2021, purportedly for refinery rehabilitation.These deductions lacked necessary authorizations and approvals, raising concerns about potential misappropriation of funds.

Irregular Deductions from Domestic Crude Sales

In March and May 2021, NNPCL generated ₦484.7 billion from domestic crude sales.However, ₦343.6 billion was unilaterally deducted to cover costs such as value shortfalls, strategic stock holding, and pipeline maintenance.The absence of detailed records for these deductions contravenes the Nigerian Constitution and Financial Regulations, indicating possible revenue diversion.

Unaccounted Miscellaneous Income

The audit also reveals that ₦83.6 billion, categorized as miscellaneous income from NNPCL's joint venture operations between 2016 and 2020, was deposited into a CBN/NNPC sinking fund account instead of the Federation Account.This practice violates financial regulations and suggests potential fund mismanagement.

Recommendations and Call for Accountability

The Auditor-General recommends that NNPCL's Group Chief Executive Officer provide explanations to the National Assembly's Public Accounts Committees for these unauthorized deductions and ensure the recovery and remittance of the diverted funds to the government's treasury.The report attributes these anomalies to weaknesses in NNPCL's internal control systems, emphasizing the need for enhanced financial oversight to prevent future revenue losses.

These findings have prompted calls from organizations like the Socio-Economic Rights and Accountability Project (SERAP) for NNPCL to account for the missing funds and to identify and prosecute those responsible for the financial discrepancies.

The audit's revelations underscore the critical need for transparency and accountability within Nigeria's oil sector to safeguard public funds and ensure they are utilized for the nation's development.








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