Senate asks NNPCL to account for missing N210trn

From Adesuwa Tsan, Abuja

The Senate has given the Nigerian National Petroleum Company Limited (NNPCL) one week to account for unexplained discrepancies totaling over N210 trillion in its audited financial statements for the years 2017 to 2023.

The ultimatum followed a probing session by the Senate Committee on Public Accounts, which uncovered serious inconsistencies in the company’s financial records, particularly under the headings of accrued expenses and receivables.

Present at the hearing were NNPCL’s Chief Financial Officer, Dapo Segun, and other senior officials.

The lawmakers expressed shock at figures in the external auditors’ reports for lacking sufficient documentation.

Chairman of the committee, Aliyu Wadada, described the discrepancies as “mind-boggling”, adding that the Senate would not condone such opacity at a time when the federal government is intensifying efforts to boost revenue.

“The audited financials show accrued expenses of over N103 trillion, including retention fees, legal fees, and auditor fees—none of which were backed by the necessary documents.

“For instance, retention fees alone were quoted at over N600 billion, yet no contracts were referenced to justify these amounts. Legal fees were also listed without any documentation showing the nature of the legal services provided.”

He further noted that the receivables section also reported a staggering N103 trillion, compounding the financial inconsistencies.

“We were handed a fresh document by NNPCL just before this session began, and it contradicts the officially audited reports. The receivables figure in the new document is entirely inconsistent with what is in the audited financial statements. We found this not only ridiculous but deeply troubling.”

Wadada emphasised that the findings were not speculative but drawn from NNPCL’s own publicly available audited reports.

“In a country led by President Bola Ahmed Tinubu, who is driving reforms under the Renewed Hope Agenda, access to credible financial information is non-negotiable,” he said.

“We cannot afford to overlook these figures. We need every available kobo to fund development. These discrepancies demand answers—not silence.”

He also questioned the logic behind publishing and signing off on financial statements that are still undergoing reconciliation.

“How can reconciliation still be pending, yet you release and sign off on audited financials? These are not minor oversights. These reports are already in the public domain and could severely impact investor confidence, especially with NNPCL planning to launch an Initial Public Offering (IPO),” Wadada cautioned.

The Committee also flagged contradictions between NNPCL’s declared losses and the reported profits of one of its subsidiaries.

Wadada said while the National Petroleum Investment Management Services (NAPIMS) reported a profit of ₦9 trillion between 2017 and 2021, NNPCL posted a ₦16 billion loss during the same period.

“This raises further questions about internal consistency and transparency,” Wadada said, vowing that the Senate would not rest until every naira is accounted for. We owe it to Nigerians to follow this through to the very end,” he concluded.

The committee issued 11 specific queries to the company with a directive that comprehensive response should be submitted within one week.