From Abba Dukawa, Abuja
The Senate has given the Nigerian National Petroleum Company Limited (NNPCL) a one-week ultimatum to provide detailed explanations for discrepancies amounting to over ₦210 trillion in its audited financial statements from 2017 to 2023.
This directive follows a grueling questioning session by the Senate Committee on Public Accounts, which scrutinized the company’s records and raised concerns over unexplained figures under “accrued expenses” and “receivables.”
During the session, NNPCL’s Chief Financial Officer, Dapo Segun, and other top officials appeared before the Senate, where several discrepancies were revealed from the external auditors’ report.
The committee chairman, Aliyu Wadada, described the inconsistencies as “mind-boggling” and “unacceptable,” emphasizing the need for transparency given the government’s ongoing revenue drive.
The audited statement listed accrued expenses of ₦103 trillion, including retention fees, legal fees, and auditor fees, without providing supporting documents.
Wadada noted that retention fees alone were quoted at over ₦600 billion without referenced contracts to justify these amounts. Additionally, legal fees lacked details of the engagements that led to those costs.
*Inconsistencies and Concerns*
The committee received a new document from NNPCL shortly before the hearing, which contradicted details in the official audited reports.
He stated that the receivables figure presented in the new document was entirely inconsistent with the audited financial statement, describing this as “ridiculous” and “deeply troubling.”
The Senate emphasized that the concerns raised stemmed directly from the contents of the audited reports, which are in the public domain.
Wadada stressed that accurate financial information is crucial for funding development and that figures like these demand answers, not silence.
The committee has handed over 11 specific questions to NNPCL and expects a full response within one week.
The committee also noted contradictions between profit and loss declarations by NNPCL and one of its subsidiaries. While the National Petroleum Investment Management Services (NAPIMS) declared a profit of ₦9 trillion between 2017 and 2021, NNPCL recorded a loss of ₦16 billion during the same period.
The Senate has vowed to take all necessary steps to ensure that every kobo is accounted for.