NNPCL has come under fire as Auditor-General flagged unaccounted £14.3m expenditure in London office.
NaijaOnPoint Nigeria reports that the Nigerian National Petroleum Company Limited (NNPCL) is under mounting scrutiny after the Auditor-General’s 2022 report revealed that the company failed to account for £14.3 million spent by its London office during the 2021 financial year.
The audit report, which contains interim findings, identified major breaches of financial regulations and raised concerns over NNPCL’s compliance with due process and accountability standards.
According to the document, the London office spent a total of £14,322,426.59 on personnel costs, fixed contracts and other operational expenses. However, audit officials said they were:
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Not given access to supporting documents or expenditure schedules
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Unable to verify how the funds were utilized
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Prevented from determining whether the spending complied with financial regulations
The report states that the unverified transactions violate Paragraph 112 of the Financial Regulations (FR) 2009, which mandates accounting officers to enforce internal rules that ensure accountability and safeguard public funds.
It also notes breaches of Paragraph 415, which warns officers against unnecessary expenditure, and Paragraph 603(1), which requires all payment vouchers to contain full details and relevant supporting documents such as invoices, purchase orders or time sheets.
The Auditor-General cautioned that undocumented spending exposes public funds to diversion and misappropriation, linking the irregularities to weaknesses in NNPCL’s internal control systems.
NNPCL Defends London Office Operations
Responding to the audit concerns, NNPCL management said the London office functions as a service unit with an approved annual budget of £14.3 million. The company insisted that all expenditures were made in line with operational and financial requirements.
Management argued that the audit did not specify which transactions required clarification, making it difficult to provide targeted documentation. It maintained that records for all personnel costs and operational expenses exist and can be submitted for review.
“These records can be made available upon request for audit review to verify compliance with financial regulations and ensure alignment with due process,” the company said, reiterating its commitment to transparency and strengthened internal controls.
However, the Auditor-General rejected the explanation, declaring it insufficient and maintaining that the findings remain valid until NNPCL implements all recommendations.
Recovery of Funds Ordered
According to Premium Times, the report instructed the Group Chief Executive Officer (GCEO) to:
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Recover and remit the entire £14.3 million to the national treasury
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Face sanctions outlined in Paragraphs 3106 and 3115 of the Financial Regulations if the funds are not recovered
Broader Financial Probes
The £14.3 million issue is only one aspect of several financial irregularities listed in the audit report. NNPCL is also being queried over:
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Over $51 million in questionable settlements
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About N684 million spent on abandoned projects and irregular procurements
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A Senate investigation into an alleged N210 trillion unaccounted for between 2017 and 2023
The controversies have intensified public calls for greater transparency and reform within Nigeria’s national oil company.