The Nigerian National Petroleum Company Limited (NNPCL) has been indicted of over N61 billion frauds by the Office of Auditor-General of the Federation which was allegedly perpetrated through some questionable financial transactions.
According to the report, the alleged frauds were committed through multiple breaches of financial regulations and weak internal controls.
For example, the audit report uncovered 28 major financial irregularities involving N30.1 billion $51.6 million, £14.3 million, and €5.17 million perpetrated in questionable payments, undocumented expenditures, and breaches of financial regulations.
All amounted to N61.1 billion when converted.
The allegation is a contained in the audit report of transactions in NNPCL between 2020 and 2021 which was submitted to the National Assembly in September 2025.
One of the allegations was the failure to deduct the mandatory 1 per cent Stamp Duty on payments totalling N24.7 billion and $52.98 million to contractors and service providers.
This represents unpaid taxes of N247 million and $529,863, a clear contravention of Treasury Circulars and the Financial Regulations mandating Stamp Duty, VAT, and WHT deductions.
The audit also discovered $22.84 million paid to a contractor for the controversial 2017/2018 Direct Sales Direct Payment (DSDP) arrangement.
Although crude oil and products were supplied, reconciliation records revealed that the company was not owed the amount paid.
The GCEO was ordered to recover and remit the full $22.84 million to the government treasury.
Another anomaly involved the unauthorised renewal of a vessel charter contract by the Chief Operating Officer (COO) Downstream for one year without approval.
Despite lacking approval, $1.8 million was paid within nine months.
The audit uncovered further irregular payments totalling $2.01 million and N478.5 million for the Atlas Cove Depot Optimisation Project.
No invoices, receipts, or credible documentation were provided.
The NNPC was also indicted over the emergency procurement of custody transfer metres worth $8.21 million (later revised to $8.23 million).
The audit report also reported that a contractor, who was owed $1.03 million for vessel charter services between 2007 and 2010, was bypassed and the money was instead paid to a different company that had no contractual relationship with NNPC
The report also indicted NNPC for questionable variations and overpayments totalling $1.93 million on coastal vessel charter contracts.