Auditor-General accuses NNPC of failing to account for N27bn spent on London office

The Auditor-General of the Federation has accused the Nigerian National Petroleum Company Limited (NNPCL) of failing to account for £14.3 million (approximately N27 billion) spent on its London office in 2021.

According to PREMIUM TIMES, the allegation is contained in the Auditor-General’s 2022 report, which includes interim audit observations requiring the NNPCL to provide clear explanations.

The report detailed regulatory failures as well as a disregard for due process and accountability standards.

The auditor stated that a total of £14.3 million was expended on the London Office during the 2021 financial year.

Audit officials were not provided with the necessary documents or allowed to confirm how the funds managed by the London office were utilised, nor could they ascertain whether the expenditures were made in line with due process and economy as required by extant regulations, the report said.

The transaction, the report noted, contravenes Paragraph 112 of the Financial Regulations (FR) (2009), which states: “The functions of the Accounting Officer shall include: …(i) ensuring internal guides, rules, regulations, procedures are adequately provided for the security and effective check on the assessment, collection and accounting for revenue.

Paragraph 112 mandates accounting officers to ensure adequate internal rules for the security and accountability of public funds, while Paragraph 415 states, “The Federal Government requires all officers responsible for expenditure to exercise due economy. Money must not be spent merely because it has been voted.”

Additionally, Paragraph 603(1) requires that all vouchers include complete details, “dates, numbers, quantities, distances and rates”, and be supported by documentation such as invoices and purchase orders.