The Nigerian National Petroleum Company Limited is facing fresh scrutiny after auditors questioned £14.3 million spent on its London office. The findings came from the 2022 audit report, which raised concerns about missing documents and weak internal controls.
According to the auditor-general, officials could not verify how the London office used the funds during the 2021 financial year. The report said the company breached key financial regulations that demand transparency and full documentation of public expenditure.
The audit team warned that the gaps create high risks of diversion and misappropriation of public funds. It added that the failures highlight long-standing weaknesses in NNPCL’s internal control systems.
NNPCL said the London office operates as a service unit with an approved annual budget. It added that all records are available for review when requested. However, the auditor-general found the response insufficient and upheld the initial findings.
The report directed the Group Chief Executive Officer to recover the entire £14.3 million and remit it to the treasury. It also warned that penalties for irregular payments could apply if the funds were not returned.
The latest audit report further accused NNPCL of misappropriation, inflated contracts, and irregular payments worth over $51 million between 2020 and 2021. Additional findings revealed questionable expenditures of about N684 million on abandoned projects and unexecuted contracts.
Meanwhile, NNPCL disclosed that Nigeria now owes the company N17.5 trillion for pipeline protection and energy-security operations in 2024. Analysts have since demanded a full forensic review of the spending.
Documents show that N7.13 trillion was spent to stabilise petrol prices under the regulated pricing system. The company said a large portion of the money went into pipeline security, repairs, and anti-theft operations.
This disclosure has revived questions about the government’s claim that the fuel subsidy ended in May 2023. The new figures show continued financial support for petrol pricing, despite repeated assurances to the contrary.
NNPCL also announced a profit after tax of N5.4 trillion for 2024, marking a sharp rise from the previous year. The company reported an 87 percent revenue increase driven by crude oil sales and improved operational performance.
Financial analysts noted that gas, power, and service revenues rose sharply, reflecting wider commercial activity. However, they warned that rising finance costs and swelling receivables require close oversight.
Experts raised concerns about the N17.5 trillion spent on energy-security operations. They argued that the amount is too large given Nigeria’s production output. Some analysts said the spending signals deep leakages and collusion within the industry.
Others claimed crude is being allocated to armed groups disguised as pipeline security contractors. They demanded open contracting and independent verification of all security payments.
The NNPCL faces mounting scrutiny as historical controversies resurface. The EFCC is already investigating former chief executives over alleged refinery rehabilitation fraud worth $2.7 billion.
The Senate is also probing N210 trillion allegedly unaccounted for between 2017 and 2023. Lawmakers said the company repeatedly failed to provide adequate explanations.
Auditors previously flagged the diversion of N514 billion in 2021. Critics argue that the pattern shows systemic opacity. They insist that only sustained transparency reforms can restore trust in the national oil company.
