Nigerian Auditor-General reports that an NNPC finance chief authorized N3.4 billion in payments without GMD approval, raising concerns over weak controls.
Nigerian Auditor-General has raised serious questions over financial controls at the Nigerian National Petroleum Company Limited (NNPC Ltd), after an audit revealed that the company’s former Chief Financial Officer (CFO), approved more than N3.4 billion in payments without the required sign-off from the Group Managing Director (GMD).
The findings, disclosed in the Auditor-General’s 2022 annual report recently submitted to the National Assembly, allege that the payments were made without supporting documentation, in breach of Nigeria’s Financial Regulations. The 808-page report is one of the most extensive government audits to date and forms part of a constitutionally mandated review of public finances.
According to the report, the CFO authorized payments “without evidence of the approvals of the GMD,” even though the sums exceeded his approval limits. Audit officials said they were unable to confirm the actual expenditures because many transactions took place outside NNPC’s headquarters, preventing full verification. The report warned that the lapses point to internal control weaknesses and could amount to potential diversion of public funds.
The CFO during the audit period, Umar Isa Ajiya, has since faced broader scrutiny. He was replaced in late 2024 and has been publicly accused of mismanagement. Earlier this year, local media reported that the Economic and Financial Crimes Commission (EFCC), questioned him in connection with alleged multibillion-dollar refinery rehabilitation irregularities, though he denied being arrested, insisting he voluntarily responded to investigators.
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NNPC Ltd, in a formal response to the audit query, said the contested payments were routine inter-company transfers to subsidiaries such as the Petroleum Products Marketing Company, Nigerian Pipelines and Storage Company, and Warri Refining and Petrochemical Company. The company argued that the CFO acted under a Board-approved Delegation of Authority that permits such approvals for operational funding.
Management said it would provide documentation once the audit team identifies specific transactions requiring verification. Despite that assurance, the Auditor-General found the response insufficient and maintained that the observations remain valid pending implementation of corrective measures.
The report recommends that NNPC’s Group Chief Executive Officer account for the funds before the National Assembly’s Public Accounts Committees and recover the ₦3.4 billion to the Treasury. Should that fail, the Auditor-General advised applying sanctions outlined in Nigeria’s Financial Regulations, which govern misconduct involving irregular payments and unaccounted public funds.
The matter is expected to draw renewed legislative and public scrutiny as Nigeria continues efforts to tighten transparency across its state-owned enterprises.