Audit Exposes NNPCL’s ₦684 Million In Abandoned Projects & Irregular Contracts

By ESTHER McWILLIS-IKHIDE

THE Nigerian National Petroleum Company Limited (NNPCL) has come under intense scrutiny following the 2022 Auditor-General’s report, which revealed questionable spending of about ₦684 million on abandoned projects, unexecuted contracts, and irregular procurements.

The report highlights weak internal controls, opaque transactions, and potential diversion of public funds. Key cases include a ₦533 million contract for an Accident and Emergency Facility in Abuja, of which ₦292 million was paid despite the project being abandoned. Similarly, ₦246 million was paid for carbon steel pipes to the Warri Refinery, yet nearly 500 metres of pipes were undelivered. Another ₦152 million went to procurement allegedly requested by the Nigeria Police, with no evidence of completion.

Auditors cited violations of Financial Regulations 3104, 3106, and 708 (2009), mandating recovery of funds and referral of offenders to the EFCC. They recommended immediate action to recover the payments and reinforce compliance.

NNPCL has faced ongoing controversies, including investigations into a $2.7 billion alleged fraud involving refinery maintenance and billions in unaccounted funds over several years. The Auditor-General’s findings underscore persistent lapses in oversight, exposing the government to potential financial losses and threatening public trust in the state oil company.

Corrective measures, stronger controls, and enforcement of financial regulations are now considered urgent to safeguard public resources.