NNPCL Must Account for ‘Unreconciled’ N210tr in Financial Statements – Senate Insists
The Senate Committee on Public Accounts has renewed its demand for the Nigerian National Petroleum Company Limited (NNPCL) to account for a staggering ₦210 trillion in unreconciled entries discovered in its audited financial statements spanning 2017 to 2023.
At a reconvened committee session on Thursday, the committee chairman, Senator Aliyu Wadada, stressed that while the Senate has not accused NNPCL of stealing the funds, the company must explain the discrepancies, particularly as they pertain to accrued expenses and receivables recorded in its books.
“You have an account that is not netted off. It can’t be acceptable to us,” Senator Wadada stated firmly.
The panel had earlier issued an ultimatum to the Group Chief Executive Officer (GCEO) of NNPCL, Mr. Bayo Ojulari, to appear by July 10 to respond to 11 queries regarding the unexplained figures. However, Ojulari failed to appear, citing his participation at an OPEC event abroad. Instead, he delegated the company’s Chief Financial Officer (CFO), Mr. Dapo Segun, to represent him.
Segun’s explanation did not sit well with several senators.
“Today, the same Nigerians who gave you the opportunity to represent them through presidential appointment are asking for accountability—and you are not available,” Senator Abdul Ningi said pointedly.
Senator Adams Oshiomhole also expressed his displeasure, describing the NNPCL as “dirty” and riddled with a history of corruption. He insisted that the company must be transparent with how it manages Nigeria’s oil wealth.
“Anyone too big to obey the Constitution should relocate,” Oshiomhole added. “We are empowered by our constituents to do what we are doing.”
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Senator Wadada further dismissed public insinuations that the Senate lacked the expertise to interpret NNPCL’s financials.
“How can you claim that Senator Ibrahim Dankwambo, a former Accountant-General of the Federation; Senator Ede Dafinone, from a renowned family of accountants; a Senior Advocate of Nigeria (SAN); and others like Senator Abdul Ningi — do not understand your financial statement?” he queried.
Disputed Entries: Accrued Expenses and Receivables
Providing further clarity, Wadada revealed that the ₦210 trillion figure emerged primarily from two items: accrued expenses (₦103 trillion) and receivables (also ₦103 trillion) listed in the audited reports.
According to him, the accrued expenses—comprising retention fees, legal fees, and auditors’ fees—lack sufficient detail. For instance, he pointed out that retention, usually 5% of the total contract sum, was recorded at ₦600 billion, with no reference to the contracts involved. Similarly, no breakdowns were attached to the reported legal and auditing fees.
Even more concerning, the committee noted that a new document submitted by NNPCL on Thursday contradicted the figures in the original audited statements.
“This is ridiculous and unacceptable,” Wadada said. “All 11 questions we posed emerged directly from our findings in the company’s audited reports.”
Senate Vows to Pursue Accountability
Wadada emphasized that the Senate would not back down, especially at a time when President Bola Tinubu’s administration is seeking funds to drive its Renewed Hope Agenda.
“These figures are mind-boggling and worrisome,” he said. “How can you sign off on an audited financial statement without completing reconciliation? Yet you plan to proceed with an Initial Public Offering (IPO). That’s unacceptable.”
The committee has adjourned until Tuesday next week, pending a new appearance date for Mr. Ojulari.
By PRNigeria
