The Senate Public Accounts Committee has demanded that the Nigerian National Petroleum Company Limited (NNPCL) provide a comprehensive explanation for N210 trillion in discrepancies identified within its audited financial records spanning 2017 to 2023.
Senator Aliyu Wadada, the committee chairman, clarified that the Senate is not accusing NNPCL of "stealing" the funds, but rather insists on proper accounting for the figures submitted by the company. He highlighted that the discrepancies arise from entries that were not properly "netted off," a fundamental accounting practice.
A key issue cited by the committee involves accrued expenses. While the profit and loss (P&L) statement showed accrued expenses ranging from ₦3 trillion to ₦5 trillion, the audited financial notes indicated a figure of ₦103 trillion. Senator Wadada stated that "there is no justification in accounting principles for an accrued expense that bypasses the P&L," emphasizing that figures in financial notes must reflect the business's performance.
The committee also noted that NNPCL's claims regarding assets owed to the company by various banks were vague and lacked verified documentation. Despite previous meetings where lawmakers expressed frustration over NNPCL's inability to adequately explain these inconsistencies, the company's submissions have raised more questions than answers.
Comprising seasoned financial professionals, including a former Accountant General of the Federation and a forensic accountant, the committee asserted its competence in understanding the financial data.
The Senate has now mandated the Group Chief Executive Officer (GCEO) of NNPCL to personally appear before the committee at its next sitting, with the date to be communicated formally. Senator Wadada stressed the importance of transparency, stating, "This is public finance.
The Nigerian people deserve to know how their resources are being managed."
This ongoing investigation aligns with growing public demands for increased financial transparency in Nigeria's oil sector, especially following NNPCL's transition into a limited liability company under the Petroleum Industry Act (PIA).
Stakeholders and civil society groups have welcomed the Senate's push for accountability. The committee remains committed to resolving the matter and ensuring accurate and transparent disclosures from NNPCL.