Senate gives NNPCL one week to account for N210trn discrepancies in audited reports

The Nigerian Senate has issued a one-week ultimatum to the Nigerian National Petroleum Company Limited (NNPCL) to provide a comprehensive explanation for alleged discrepancies totaling over N210 trillion uncovered in its audited financial statements for the years 2017 to 2023.

The directive came on Wednesday during a session of the Senate Committee on Public Accounts, where lawmakers grilled NNPCL officials over questionable entries in the company’s financial records. The committee expressed alarm over large, undocumented figures listed under “accrued expenses” and “receivables.”

Committee Chairman, Senator Aliyu Wadada, described the inconsistencies as “mind-boggling” and “completely unacceptable.” He said the audited accounts cited accrued expenses amounting to N103 trillion, including retention fees, legal and auditor fees—without corresponding contract details or supporting documentation.

“Retention fees alone are quoted at over N600 billion, yet no contracts were referenced to justify these amounts. There are also legal fees with no explanation of the services rendered,” Wadada noted.

The “receivables” component, which also amounted to N103 trillion, raised similar concerns. According to the senator, a new document submitted by NNPCL just before the hearing contained figures that starkly contradicted those in the previously audited statements.

“We found this not only ridiculous but deeply troubling,” he said, emphasizing that the committee’s concerns were based solely on NNPCL’s own officially released reports.

Wadada questioned the decision to finalize and sign off on the financial statements despite ongoing internal reconciliations—especially as NNPCL prepares for a potential Initial Public Offering (IPO).

“In a country under the leadership of President Bola Ahmed Tinubu, who is pushing for transparency under the Renewed Hope Agenda, access to accurate and reliable financial information is non-negotiable,” Wadada stated. “We cannot overlook these discrepancies when the country is in desperate need of resources to fund development.”

The committee has submitted 11 specific queries to NNPCL and expects full written responses within seven days.

In a related finding, the committee flagged discrepancies between the profit and loss declarations of NNPCL and one of its subsidiaries, the National Petroleum Investment Management Services (NAPIMS). While NAPIMS reported a profit of N9 trillion from 2017 to 2021, NNPCL, during the same period, declared a N16 billion loss, a contrast the committee found inexplicable.

The Senate vowed to pursue the matter vigorously, stressing its commitment to ensuring transparency and accountability in the management of public funds.