The details of a 2021 report have uncovered at least four major financial infractions amounting to N514bn in the operations of the Nigerian National Petroleum Company Limited for the financial year ending December 31, 2021.
The alleged infractions include irregular deductions worth N343.64bn from domestic crude sales at source, warehousing of N83.66bn from the federation’s miscellaneous income in a sinking fund account, unauthorised deductions of N82.95bn from the federation revenue for refinery rehabilitation and the unsubstantiated payment of N3.75bn shortfalls from the sale of petrol.
The audit issues are contained in the 2021 audit report of non-compliance/internal control weaknesses in the MDAs for the 2021 financial year.
The Office of Auditor-General of the Federation says the issues violated the Constitution of the Federal Republic of Nigeria and the 2009 Act of Financial Regulations.
The report reads, “Audit observed from the review of NNPC SAP payment record for March and May 2021 payments that: The sum of N484.73bn was the gross amount generated for sale of Domestic Crude for the Months of March and May 2021.
“The sum of N343.64bn from the gross amount was unilaterally deducted from the gross domestic crude sales as NNPC Value shortfall, Strategic Stock Holding Cost, Crude Oil and Products Pipeline Losses, as well as the pipelines maintenance and management costs.
“The details of each of the cost components deducted were not provided for audit review. Hence, reasons for the deductions could not be justified by the Management.
“In the month of May, the net payable which could have been remitted ought to have been N127.075bn but only the sum of N77.075bn was remitted, leaving an unremitted balance of N50bn to the Federation Account which has remained unaccounted for.
“The above anomalies could be attributed to weaknesses in the internal control system at NNPC, now NNPC Ltd. This is a potential loss of Federation Revenue, diversion of public funds, or misapplication or misappropriation of funds.”
