Senate demands NNPCL account for ₦210 Trillion discrepancies in audited reports

The Nigerian Senate has given the Nigerian National Petroleum Company Limited (NNPCL) a one-week deadline to clarify alarming discrepancies totaling over ₦210 trillion discovered in its audited financial reports covering 2017 to 2023.

This directive was issued following a review by the Senate Committee on Public Accounts, which uncovered questionable figures listed under “accrued expenses” and “receivables.” During the session on Wednesday, the committee’s chairman, Senator Aliyu Wadada, described the inconsistencies as “mind-boggling” and “unacceptable,” especially as Nigeria continues its aggressive revenue generation drive.

Among the red flags raised, the audited reports reportedly listed accrued expenses of ₦103 trillion, which included over ₦600 billion in retention fees, legal charges, and auditor fees without corresponding contract documents or evidence of the services rendered. Another ₦103 trillion was also recorded as receivables, with fresh documents submitted by the company moments before the hearing contradicting figures in the official audited reports.

Wadada expressed deep concern over these conflicting records, stressing that it was irresponsible for a national oil firm preparing for an Initial Public Offering (IPO) to publish financial statements riddled with unresolved figures.

He said, “In a country led by President Bola Tinubu, who is determined to reset Nigeria’s economic narrative under the Renewed Hope Agenda, these discrepancies cannot be ignored. Every kobo must be properly accounted for to finance national development.”

The Senate also pointed out contradictions between profit and loss declarations from NNPCL and its subsidiary, National Petroleum Investment Management Services (NAPIMS). While NAPIMS declared a ₦9 trillion profit between 2017 and 2021, NNPCL posted a ₦16 billion loss in the same period.

Senator Wadada confirmed that 11 specific questions have been forwarded to the NNPCL management, with a firm demand for full explanations within one week. He assured Nigerians that the National Assembly would take every step necessary to safeguard public resources and uphold transparency.