NNPC Under Fire For £14 Million London Office Spending

By ESTHER McWILLIS-IKHIDE

THE Nigerian National Petroleum Company Limited (NNPCL) is facing intense scrutiny after the Auditor-General flagged £14.3 million spent on its London office during the 2021 financial year as inadequately accounted for. The 2022 audit report raised concerns over regulatory lapses, weak internal controls, and failure to provide supporting documents for the expenditures.

According to the report, audit officials were unable to verify whether the funds were spent according to due process, contravening key provisions of the 2009 Financial Regulations that demand transparency, detailed documentation, and prudent financial management. The auditor-general warned that such gaps pose risks of misappropriation and diversion of public funds, urging the Group CEO to recover and remit the amount to the treasury.

NNPCL management defended the spending, stating the London office operates as a service unit with an approved £14.3 million annual budget, maintained detailed records, and executed the funds in line with operational requirements. However, the auditor-general deemed the explanations unsatisfactory, leaving the findings valid until recommendations are implemented.

The London office audit is part of a broader scrutiny of NNPCL, which has faced repeated allegations of financial mismanagement, including over $51 million in irregular settlements, ₦684 million on abandoned projects, and underperformance of the Kaduna, Warri, and Port Harcourt refineries. Investigations by the EFCC into a $2.7 billion fraud involving former executives and ongoing Senate probes into ₦210 trillion in unaccounted funds underscore longstanding transparency challenges.

The report highlights a continued call for accountability in NNPCL, emphasizing that proper financial governance is critical to protecting Nigeria’s oil revenues and restoring public trust.