A decade-long review of public audits and legislative probes reveals that the Nigerian National Petroleum Company Limited (NNPCL) may have mismanaged, diverted, or spent over ₦14 trillion in public funds without full disclosure or legal authorization between 2014 and 2024.
Despite recurring audit flags and National Assembly interventions, no known prosecutions or recoveries have followed the disclosures. The pattern points to a deep-rooted accountability vacuum in Nigeria’s oil governance.
Case 1: NNPCL Fraud Case in 2017 — Withheld ₦1.33 Trillion from Federation Revenue
In 2017, NNPCL withheld ₦1.33 trillion from the ₦2.41 trillion due to the Federation Account, citing a “JV cash call.” The Auditor-General flagged this deduction as unconstitutional and in breach of Section 162(1) of the 1999 Constitution.
The National Assembly’s Public Accounts Committee demanded explanations. The Auditor-General called for immediate sanctions and ordered NNPCL to halt at-source deductions. However, the company faced no public penalties, and authorities have not recovered the funds.
Case 2: NNPCL Diverted JV Revenues Worth ₦681 Billion in 2019
In 2019, the Auditor-General’s report revealed that NNPCL remitted only ₦519.92 billion out of ₦1.27 trillion earned through NPIMS. The company also deducted $1.278 billion from JV oil royalties without legal approval.
Auditors accused NNPCL of breaching revenue reporting and budget laws. Lawmakers invited the company to justify the shortfalls, but they stopped short of initiating recovery or prosecutorial actions. Officials failed to account for the diverted sums.
Case 3: NNPCL Diverted ₦514 Billion from Crude Sales in 2021
In the 2021 audit released in November 2024, the Auditor-General identified at least ₦514 billion in unapproved deductions. NNPCL took ₦343.64 billion as “operational costs” from domestic crude sales and ₦82.95 billion for refinery rehabilitation without documentation.
Additional anomalies included a ₦83.66 billion transfer to a “sinking fund” and ₦3.75 billion from misreported petrol sales. President Bola Tinubu responded by sacking the NNPCL board and CEO in April 2024 and ordering a forensic audit. While the government pledged recovery, no recovered funds or prosecutions have been made public.
Case 4: NNPCL Burned ₦11.35 Trillion on Inactive Refineries (2010–2023)
Between 2010 and 2023, NNPCL spent ₦11.35 trillion on Turn-Around Maintenance (TAM) for its four refineries with no measurable output. In October 2023, the Senate launched an ad hoc probe to investigate all refinery contracts and expenditures.
Senators empowered the panel to summon NNPCL and other agencies. By early 2024, the investigation had yet to produce public findings or initiate recoveries. The Senate criticized the waste but has not acted against any contractor or NNPCL official.
Case 5: NNPCL Made ₦151 Billion Unauthorized Deductions in 2020
In FY2020, the Auditor-General found that NNPCL deducted ₦151.12 billion from public funds for “priority projects” and “handling costs” without legislative approval. The 2020 audit, submitted in 2023, demanded a justification.
Auditors classified the deductions as unjustified. NNPCL offered no documented approval, and the company has neither reimbursed the funds nor faced consequences.
A Decade of NNPCL Fraud Case Patterns, No Sanctions
Despite recurring evidence of revenue mismanagement, no NNPCL official has faced trial or been compelled to return diverted funds. The Federal Government has repeatedly promised to act but failed to enforce audit recommendations.
With a forensic audit now underway in 2025, policy experts warn that if Nigeria continues to allow oil-related financial violations to go unpunished, budget shortfalls and institutional mistrust will persist.
The ball is now in the court of the Tinubu administration. Will it finally close the loop between audit and accountability in the ongoing NNPCL fraud case?
