By Joshua Tosin Ogunsakin 
The Senate has issued a one-week ultimatum to the Nigerian National Petroleum Company Limited (NNPCL) to provide detailed explanations regarding discrepancies amounting to over ₦210 trillion in its audited financial statements from 2017 to 2023.
The directive followed a 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” in the reports.
During the session on Wednesday, where Dapo Segun, the chief financial officer, alongside some other top officials of the company, appeared before the Senate, several discrepancies were unveiled from the external auditors ‘ report of the NNPCL.
Aliyu Wadada, the chairman of the committee, described the inconsistencies as “mind-boggling” and “unacceptable,” stressing the urgency for transparency given the government’s ongoing revenue drive.
According to him, the audited statement listed accrued expenses of ₦103 trillion, including retention fees, legal fees, and auditor fees, without providing supporting documents.
Wadada said, “Retention fees alone are quoted at over ₦600 billion, yet no contracts were referenced to justify these amounts,” he said.
“There are also legal fees with no attached details of the legal engagements that led to those costs.”
“Now, on these just two items, accrued expenses and then receivables, we are talking over ₦210tn.”
Equally troubling, he noted, was the receivables section, which also amounted to ₦103 trillion. The committee said it received a new document from NNPCL shortly before the hearing began, one that contradicts details in the official audited reports.
“The receivables figure presented in the new document was entirely inconsistent with the audited financial statement,” Wadada said.
“We found this not only ridiculous but also deeply troubling.”
Senator Wadada emphasized that the concerns raised by the Senate stemmed directly from the contents of the audited reports, which are already in the public domain.
“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.”
The senator further questioned why NNPCL signed off on the reports despite ongoing internal reconciliation, noting that the company is also planning 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 out there in the public space and can impact investor confidence,” he warned.
He concluded by stating that the committee has handed over 11 specific questions to the NNPCL and expects a full response within one week.
In a related observation, the committee also noted contradictions between profit and loss declarations by the company and 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 slide, promising that it will take all necessary steps to ensure that every kobo is accounted for.