The Nigerian Senate has issued a one-week ultimatum to the Nigerian National Petroleum Company Limited (NNPCL) to explain financial discrepancies amounting to over N210 trillion in its audited financial statements covering the period from 2017 to 2023.
The directive came during a charged session of the Senate Committee on Public Accounts on Wednesday, where NNPCL’s Chief Financial Officer, Dapo Segun, and other top company executives faced intense questioning from lawmakers.
Lawmakers described the alleged financial gaps as “mind-boggling,” citing glaring irregularities in figures recorded under accrued expenses and receivables in the company’s reports.
The committee chairman, Senator Aliyu Wadada, said the inconsistencies were “unacceptable,” warning that the Senate would fully exercise its oversight authority to uncover the truth.
“We are looking at over N210tn in just two categories—accrued expenses and receivables. These are not mere rounding errors; they raise fundamental questions about transparency and financial integrity,” Wadada stated.
According to the Senate, the audited reports revealed accrued expenses of N103tn, which shockingly included N600bn in retention fees, unspecified legal fees, and auditor charges—all with no supporting documentation or referenced contracts.
“How do you quote N600bn in retention fees with no contract to back it up?
There are legal fees with no record of the legal services rendered. It’s completely unjustifiable,” Wadada queried.
Even more troubling was a N103tn figure under receivables, which lawmakers argued lacked explanation or breakdown.
The committee also revealed that NNPCL submitted a revised document moments before the hearing—one that contradicted the original audited financials already in the public domain.
“The new document completely distorts the figures in the official audit. We find that not just ridiculous, but deeply troubling,” Wadada said.
He further questioned the credibility of the audit process, expressing concern that NNPCL finalized and signed off on its accounts while still internally reconciling massive financial figures.
“How do you proceed to finalise audited accounts while still reconciling such massive figures? These aren’t internal memos; they’re public documents that potential investors will scrutinise,” he added.
To that effect, the committee submitted a list of 11 critical questions to NNPCL, demanding comprehensive written responses within one week.
Lawmakers emphasized that the probe is not a witch-hunt but a constitutional responsibility aimed at protecting public funds and enforcing financial discipline—especially in light of the federal government’s drive for increased revenue.
Wadada invoked President Bola Tinubu’s Renewed Hope Agenda, saying it demands transparency and fiscal accountability at all levels.
“In a country striving to change its national narrative, access to accurate and verifiable financial data is non-negotiable. These kinds of discrepancies sabotage that mission,” he stated.
NAPIMS Declares Profit, NNPCL Posts Loss
Adding to the controversy, the Senate discovered a major contradiction: between 2017 and 2021, National Petroleum Investment Management Services (NAPIMS)—a subsidiary of NNPCL—declared N9 trillion in profit, while the parent company, NNPCL, reported a N16 billion loss during the same period.
“How can a subsidiary report trillions in profit while the parent company bleeds losses?” Wadada asked.
The Senate has vowed to get to the root of the matter, using all legislative tools at its disposal.
“This isn’t just about balancing books—it’s about restoring trust in public institutions. Every single kobo must be accounted for,” Wadada concluded.
