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By Our Reporter
Nigeria’s Auditor-General has uncovered that the Chief Financial Officer (CFO) of the Nigerian National Petroleum Company Limited (NNPC Ltd) approved payments totalling N3.4 billion without the mandatory authorisation of the Group Managing Director (GMD).
The disclosure was contained in the 808-page 2022 Auditor-General’s Annual Report, published in August 2025 and recently submitted to the National Assembly.
According to the report, the payments—made from a special funding request—were processed without supporting documents, in violation of the 2009 Financial Regulations.
“The sum of N3,445,022,107.40 was paid… without attaching the relevant supporting documents,” the report stated.
It added that the CFO approved the payments “without evidence of approvals of the GMD,” even though the amounts exceeded his authorised approval limit.
The Auditor-General said auditors were unable to confirm how the money was spent because the transactions occurred outside NNPC’s headquarters.
The report described the situation as a sign of weak internal controls and noted that such actions could amount to diversion or loss of public funds.
The CFO during the period under review, Umar Isa Ajiya, has been facing separate allegations of financial misconduct.
Appointed in 2019 by former President Muhammadu Buhari, Mr Ajiya oversaw NNPC’s finances during its transition into a limited liability company under the Petroleum Industry Act (PIA) 2021. He was replaced in by November 2024 by Adedapo Segun.
In June, PREMIUM TIMES reported that Mr Ajiya was taken in for questioning by the Economic and Financial Crimes Commission (EFCC) over alleged involvement in a $7.2 billion fraud linked to refinery rehabilitation projects in Kaduna, Warri and Port Harcourt.
Although EFCC sources said he was arrested, Mr Ajiya insisted he voluntarily appeared before the agency and was neither arrested nor detained.
Responding to the audit findings, NNPC Ltd said the N3.4 billion payments were inter-company transfers to its subsidiaries—PPMC, NPSC and WRPC—intended to support operational activities.
The company added that the approvals were issued in line with its Board-approved Delegation of Authority, which empowers the CFO to authorise such transactions.
NNPC said it was ready to provide all supporting documents once the audit team specified the particular transactions requiring verification.
However, the Auditor-General dismissed the explanation as inadequate, maintaining that the findings stand until NNPC implements the recommended corrective measures.
“Audit notes the management’s response but it is not satisfactory.
“Therefore, the findings remain valid,” the report concluded.
Credit: The Star
