N802bn Audit Breaches: Reps Probe NNPC, INEC

The House of Representatives Public Accounts Committee is set to question officials of the Nigerian National Petroleum Company Limited and the Independent National Electoral Commission over alleged financial breaches totalling more than N802.19 billion.

The queries are contained in reports of the Auditor-General for the Federation covering the 2021, 2022 and 2023 financial years.

The reports raised concerns over procurement procedures, revenue management, payments and compliance with financial regulations by the two government institutions.

The committee, chaired by Bamidele Salam, is scheduled to question officials from NNPC Limited and INEC on Tuesday, October 6, as part of a broader review of the Auditor-General’s findings.

NNPC is expected to respond to queries involving about N514 billion contained in the 2021 audit report.

According to the audit findings, the queries include an alleged irregular deduction of N343.64 billion from domestic crude oil sales. Another N83.66 billion was reportedly identified as miscellaneous revenue allegedly kept in a sinking fund account.

The report also raised questions over alleged unauthorised deductions of N82.95 billion from Federation revenue, while N3.75 billion was reportedly flagged as a shortfall connected with the sale of petroleum products.

The committee is expected to demand supporting documents and explanations from the company concerning the transactions.

INEC, meanwhile, is expected to provide clarifications on alleged financial breaches amounting to about N288.19 billion contained in the Auditor-General’s 2022 report.

The queries reportedly cover procurement procedures, payments to contractors and failure to remit statutory deductions. Some of the issues relate to expenditure incurred during the tenure of former INEC Chairman, Professor Mahmood Yakubu.

One transaction flagged in the audit report involved the payment of more than N5.31 billion for the supply of smart card readers used during the 2019 general election, allegedly without prior approval from the Bureau of Public Procurement.

The Public Accounts Committee is empowered under the Constitution to examine public accounts and investigate issues involving revenue losses, statutory remittances and compliance with financial regulations.

However, an audit query does not automatically establish financial misconduct. The affected institutions are expected to appear before the committee, provide explanations and submit relevant documents before the lawmakers determine whether further action is necessary.

Other government agencies are also scheduled to appear before the committee as the lawmakers continue their examination of the Auditor-General’s reports.