The Nigerian National Petroleum Corporation Limited, (NNPCL), allegedly made unauthorised deductions amounting to ₦426 billion from the federation’s revenue in a single year under former President Muhammadu Buhari, who at that time also served as Minister of Petroleum Resources.
This revelation comes from a report by the Foundation for Investigative Journalism (FIJ), which cited a 2021 audit conducted by the Office of the Auditor-General of the Federation (AuGF), published in November 2024, that reviewed NNPCL’s operations between 2020 and 2021.
The audit identified significant financial irregularities, with the NNPCL reportedly failing to respond to inquiries on the flagged issues. Among the most concerning findings was the deduction of ₦82.95 billion from revenue-generatd through crude oil and gas sales in 2021 without evidence of authorisation. These actions, the report stated, violated Section 162(1) of the Nigerian Constitution, which requires that all government revenues, barring specified exceptions, be deposited into the Federation Account.
Further breaches were noted under Nigeria’s Financial Regulations. Paragraphs 213(ii) and 217 prohibit unauthorized withdrawals and mandate accurate and prompt revenue accounting. The report also highlighted deductions totalling N343 billion from domestic crude sales revenue between March and May 2021. The NNPCL cited reasons such as “value shortfalls, strategic stock holding costs, and pipeline losses,” but failed to provide supporting documentation.
The audit warned that these deductions posed risks of revenue loss, diversion of funds, and misappropriation. Additionally, it uncovered ₦83billion from joint venture operations between 2016 and 2020 that was kept in a sinking fund account at the Central Bank of Nigeria and NNPCL, contrary to Treasury regulations requiring unused funds to be returned to the treasury annually. Another irregularity involved a ₦3.74 billion payment labeled as “shortfalls from the sale of MT cargo of PMS”, which lacked transaction details or supporting documents.
These violations further breached Paragraphs 414 and 603(i) of the Financial Regulations, which mandate clear documentation and prohibit unspent funds from being reserved, or carried into suspense accounts.
Observers say the findings contradict claims of progress in curbing corruption during Buhari’s administration. Despite initial strides, such as the NNPCL’s publication of its first financial audit in 43 years in 2021, systemic irregularities persisted.
Recall that Buhari, upon assuming office, had identified corruption in the oil sector as a priority. Speaking at the 2016 Anti-Corruption Summit in London, he sought international support to address the issue. By 2021, the ex-president claimed significant improvements in transparency and accountability within the NNPCL, hailing the reforms as evidence of his administration’s success.
However, the observers pointed out that the latest audit findings cast a shadow on these claims, suggesting unresolved issues in Nigeria’s oil sector governance.
