The Senate on Wednesday issued a one-week ultimatum to the Nigerian National Petroleum Company Limited (NNPCL) to provide a detailed explanation for alleged discrepancies amounting to over ₦210 trillion in its audited financial statements covering the years 2017 to 2023.
The Senate Committee on Public Accounts issued the directive following a grilling session during which the company’s records were scrutinised. Lawmakers raised concerns over unexplained figures listed under “accrued expenses” and “receivables” in the audited reports.
During the session, the committee identified discrepancies in the submissions presented by NNPCL’s Chief Financial Officer, Dapo Segun, and other top company officials based on the external auditors’ reports.
The committee chairman, Senator Aliyu Wadada, described the inconsistencies as “mind-boggling” and “unacceptable.”
He said the audited statements listed accrued expenses totalling ₦103 trillion, including retention fees, legal fees, and auditors’ fees, none supported with appropriate documentation.
He said, “Retention fees alone are quoted at over ₦600 billion, yet no contracts were referenced to justify these amounts. There are also legal fees with no attached details of the legal engagements that led to those costs.
“Now, on just these two items—accrued expenses and receivables—we are talking over ₦210 trillion.”
The senator noted that the “receivables” section, which amounted to ₦103 trillion, was equally troubling.
He said the committee received a fresh document from NNPCL just before the hearing, containing figures contradicting the official audited financial statements.
“The receivables figure in the new document was entirely inconsistent with the audited financial statement.
“We found this not only ridiculous but also deeply troubling,” he added.
Senator Wadada emphasised that the Senate’s concerns stemmed directly from the contents of NNPCL’s own publicly available audited reports.
“In a country led by President Bola Tinubu, who has committed to changing the national narrative through the Renewed Hope Agenda, access to accurate financial information is crucial,” he stated.
“We need all available resources to fund development, and figures like these demand answers—not silence.”
He further questioned why NNPCL signed off on the reports despite ongoing internal reconciliations, particularly given the company’s plans to go public through an Initial Public Offering (IPO).
“How can reconciliation still be pending, yet you release and sign off on the audited financials? These are not minor oversights.
“These figures are already in the public domain and can impact investor confidence,” he warned.
Wadada concluded that the committee has submitted 11 queries to NNPCL and expects a complete written response within one week.
In a related development, the committee also highlighted contradictions between NNPCL’s profit and loss declarations and those of one of its subsidiaries.
Senator Wadada disclosed that 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 not to let the matter rest, promising to take all necessary steps to ensure that every kobo is accounted for.
