The Nigerian House of Representatives' Public Accounts Committee will question officials from the Nigerian National Petroleum Company Limited (NNPCL) and the Independent National Electoral Commission (INEC) over alleged financial breaches totaling over N802.19 billion. The breaches are based on reports from the Auditor-General for the Federation covering 2021, 2022, and 2023 financial years. The committee, chaired by Bamidele Salam, will examine procurement procedures, revenue management, payments, and compliance with financial regulations.
The Auditor-General's reports raised queries against NNPCL in its 2021, 2022, and 2023 audits, and INEC will also be required to provide explanations on issues raised in the 2022 and 2023 reports. The committee will question accounting officers and subject matter experts from both agencies. The NNPCL is alleged to have financial infractions of about N514 billion, while INEC has alleged financial breaches of about N288.19 billion.
The alleged irregularities in NNPCL include deductions of N343.64 billion from domestic crude oil sales, N83.66 billion warehoused in a sinking fund account, and N82.95 billion in unauthorized deductions from Federation revenue. A further N3.75 billion was flagged as a shortfall from petroleum product sales. The committee will require NNPCL to provide supporting documents and explanations on the transactions.
INEC has several questions to answer over procurement processes, payments to contractors, and failure to remit statutory deductions. The queries cover transactions during the tenure of former INEC Chairman, Prof Mahmood Yakubu, who has since been appointed an ambassador. The Auditor-General's 2022 Report stated that over N5.31 billion was paid for smart card readers for the 2019 general election without prior approval from the Bureau of Public Procurement.
The Public Accounts Committee's proceedings are part of its constitutional responsibility to examine the Auditor-General's findings and require public institutions to account for expenditure and address outstanding audit queries. An audit query does not establish wrongdoing, as the affected agency can respond and provide evidence or explanations.
Other agencies listed for questioning by the committee include the National Mathematical Centre, National Power Training Centre, National Research Institute for Chemical Technology, and the National Biotechnology Research and Development Agency. The committee's actions aim to ensure accountability and transparency in public expenditure.
The probe is a significant step towards addressing concerns over financial management in Nigeria's public sector. The House of Representatives is exercising its powers under Sections 85, 88, and 89 of the 1999 Constitution, as amended, to investigate issues relating to revenue losses, non-remittance of statutory funds, and breaches of financial regulations.
Key points
- The Nigerian House of Representatives will probe NNPC and INEC over alleged financial breaches totaling N802.19 billion.
- The probe is based on reports from the Auditor-General for the Federation covering 2021, 2022, and 2023 financial years.
- The committee will examine procurement procedures, revenue management, payments, and compliance with financial regulations.
