The Office of the Auditor-General of the Federation (OAuGF) has raised serious concerns over the manner in which the Nigerian National Petroleum Company (NNPC) disbursed over $51 million to several contractors without following due process. The report, which reviewed financial activities within the national oil company, revealed gaps, inconsistencies, and unexplained transactions that cast a shadow over transparency and accountability at one of Nigeria’s most strategic institutions.
According to the findings, the payments were made to contractors for services and supplies that either lacked proper documentation, had incomplete supporting records, or showed no evidence that the contracted work was fully executed. These red flags, the Auditor-General noted, point to possible violations of financial regulations and raise questions about the integrity of internal controls within NNPC during the period under review.
The audit indicated that some contractors received substantial sums without clear proof of project completion. In several cases, there were no valid contracts, performance reports, or verification documents tied to the disbursements. A portion of the funds was traced to projects that could not be physically confirmed or were executed far below the standards claimed in the submitted documents. This situation suggests either poor monitoring or deliberate attempts to manipulate procurement processes.
The Auditor-General also highlighted that NNPC failed to provide satisfactory explanations when queried to justify the payments. Requests for clarifications on the discrepancies were either ignored, inadequately addressed, or supported with vague documents that did not meet statutory requirements. The lack of cooperation, the report stated, further deepened concerns that the transactions may have been engineered to bypass established financial safeguards.
These revelations have renewed public debate on the urgency of reforming the governance structure of NNPC, especially as the company now operates as a limited liability entity under the Petroleum Industry Act. Stakeholders argue that despite new legal frameworks, the persistence of opaque financial practices undermines the expected transformation of the oil sector and erodes public trust.
Financial experts warn that such questionable payments, if left unchecked, could weaken government revenue, encourage corruption, and obstruct Nigeria’s long-standing ambition to reposition its petroleum industry for global competitiveness. They stress the need for stricter enforcement of procurement laws, periodic independent audits, and stronger oversight mechanisms that ensure compliance at every level of operations.
The Auditor-General’s report recommends immediate recovery of the funds where necessary, sanctions for officials responsible for oversight failures, and a complete review of the procurement and project verification processes at NNPC. It also urges the National Assembly to intensify its oversight role to prevent recurrence and to uphold transparency as a non-negotiable standard in the management of national assets.
As Nigeria continues to grapple with economic challenges and revenue shortfalls, the revelation of over $51 million paid out without clear justification stands as a stark reminder of the systemic issues that have long plagued the oil industry. Only firm action, coupled with political will, can ensure that such financial irregularities do not continue to drain the nation’s resources.
