The Auditor-General of the Federation has uncovered more than ₦61 billion in financial irregularities linked to the Nigerian National Petroleum Company Limited (NNPC), according to a 2022 non-compliance audit report.
The report, submitted to the National Assembly, raises serious red flags about weak internal controls, unauthorized payments, tax infractions, and procurement breaches across NNPC and its subsidiaries. 
Key among the findings is ₦30.1 billion in questionable naira-denominated payments. In addition, the report flags $51.6 million, £14.3 million, and €5.17 million in payments that lack proper documentation or justification.
Particularly troubling is the £14.32 million allegedly spent by NNPC’s London office in 2021. Auditors say the company failed to provide supporting documentation for how these funds were used, and they were unable to verify whether due process was followed.
In dollar-denominated transactions, the audit calls out $22.84 million in unsubstantiated settlements under the “Direct Sales Direct Payment” (DSDP) arrangement. Other flagged payments include $12.44 million for a delayed generator procurement at Mosimi depot, and $1.80 million for an irregular contract extension for a bunkering vessel.
The report also alleges failure to deduct statutory taxes: in one case, NNPC withheld 1% stamp duty on payments totaling ₦24.7 billion and $52.98 million, amounting to unpaid tax liabilities.
On the naira side, the audit points to a series of governance lapses: there were payments made without approval, virement without authorization, and a failure to remit ₦12.721 billion into NNPC’s General Reserve Fund.  The CFO reportedly authorized ₦3.445 billion in payments without the Group Managing Director’s sign-off. 
The audit further spotlights abandoned projects: for example, ₦292.6 million was paid for an Accident & Emergency hospital project that auditors found to be deserted, despite release of funds.  Other irregular payouts include ₦152 million for police-requested procurement without a clear justification, and ₦246.19 million paid for a contract with no proof of execution. 
The Auditor-General’s office has recommended recovery of all unsupported payments, sanctions against responsible officers, and repayment of the funds into the national treasury.  It has also called on the NNPC Group CEO to appear before the Public Accounts Committee of the National Assembly to explain several of the transactions, especially the London office expenditure. 
In response, NNPC has defended some of the flagged expenses. For the London office, management said the £14.32 million budget was approved, and they claim to maintain detailed records of their spending. But the Auditor-General rejected these explanations as insufficient, saying proper documentation was not provided. 
Samuel Aina