₦802bn Audit Storm: Reps Summon NNPC, INEC Over Financial Breaches

 The National Assembly is turning the spotlight on two of Nigeria’s most critical public institutions after audit reports raised questions over more than ₦802.19bn in alleged financial breaches involving the Nigerian National Petroleum Company Limited (NNPCL) and the Independent National Electoral Commission (INEC).

 The House of Representatives Public Accounts Committee is set to question officials of both institutions over findings contained in the Auditor-General for the Federation’s reports covering the 2021, 2022 and 2023 financial years.

 The NNPCL accounts for about ₦514bn of the queried amount. Among the issues reportedly flagged are alleged irregular deductions of ₦343.64bn from domestic crude oil sales, ₦83.66bn allegedly warehoused from miscellaneous revenue in a sinking fund account and ₦82.95bn in alleged unauthorised deductions from Federation revenue. A further ₦3.75bn was reportedly identified as a shortfall linked to petroleum product sales.

 For INEC, the committee is examining alleged financial breaches of about ₦288.19bn, including concerns around procurement, contractor payments and failure to remit statutory deductions.

 One audit finding cited by the committee relates to more than ₦5.31bn allegedly paid for smart card readers for the 2019 general election without prior approval from the Bureau of Public Procurement.

Compliance Flashpoint

 The hearings place public-sector financial controls under intense scrutiny.

 The central questions are whether the transactions were properly authorised, whether procurement rules were followed, whether public funds were fully accounted for and whether statutory revenues were remitted as required.

 The PAC has constitutional powers to examine public accounts and investigate issues involving revenue losses, non-remittance of statutory funds and breaches of financial regulations.

 However, an important distinction remains: an audit query is not, by itself, proof of financial misconduct. The affected institutions are entitled to provide documents, explanations and evidence before the committee reaches conclusions.

 The hearings therefore represent more than another parliamentary investigation. They are a test of whether Nigeria’s public institutions can demonstrate a complete audit trail for hundreds of billions of naira.

 For compliance professionals, the message is stark: where public money is involved, weak documentation, irregular procurement or unexplained deductions can quickly become a governance crisis.