- Unauthorized N82.9bn Refinery Deductions Spark Calls for Accountability
- SERAP Demands Investigation into Missing Billions and Recovery of Public Funds
The Nigerian National Petroleum Company Limited (NNPCL) has been accused of misappropriating and diverting public funds meant for the Federation, according to the 2021 Auditor-General’s annual report. The 558-page report, submitted to the National Assembly in November 2024, flagged several irregularities in NNPCL’s financial operations.
Unapproved Deductions of N82.9bn
The report detailed an unauthorized deduction of N82.9 billion from Federation revenue under the guise of refinery rehabilitation. The funds were allegedly withdrawn from crude oil and gas sales records for 2020 and 2021 without proper authorization or supporting documentation.
The Auditor-General’s office linked the anomaly to weaknesses in internal controls within NNPCL and potential misappropriation of funds. These actions, the report stated, violated constitutional provisions and financial regulations mandating that all revenues be paid directly into the Federation Account.
Irregular Deductions of N343bn
Further findings revealed that N343.6 billion was unilaterally deducted from domestic crude sales to cover costs like pipeline losses, strategic stock holding, and pipeline maintenance. Details justifying these expenses were not provided, leaving the deductions largely unaccounted for.
The report recommended that NNPCL’s Group Chief Executive Officer (GCEO) furnish explanations for these irregularities to the National Assembly’s Public Accounts Committees and ensure the recovery and remittance of the funds to the treasury.
N83.6bn Miscellaneous Income Mismanagement
Another area of concern was the warehousing of N83.6 billion from miscellaneous income in a Central Bank of Nigeria (CBN) sinking fund account instead of remitting it to the Federation Account. This practice, according to the Auditor-General, contravened financial regulations and potentially contributed to Nigeria’s dependence on borrowings.
Reaction from SERAP
The Socio-Economic Rights and Accountability Project (SERAP) called on Mele Kyari, NNPCL’s GCEO, to account for the alleged missing funds. “These allegations reflect a grave breach of public trust, economic sabotage, and violations of anti-corruption laws,” SERAP stated.
The group urged the immediate identification of responsible officials and their handover to anti-graft agencies, including the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices Commission (ICPC).
Demand for Accountability
The report underscores the need for robust financial oversight and transparency in public institutions, especially those managing critical sectors like oil and gas. Stakeholders have called on the federal government to implement reforms to prevent future mismanagement and to recover funds allegedly lost to corruption.
The NNPCL has yet to respond to the allegations as of press time, leaving Nigerians eager for clarity on the fate of the billions in question.
