Senate Demands Explanation from NNPCL Over Missing N210 Trillion in Financial Records

The Nigerian Senate has issued a one-week ultimatum to the Nigerian National Petroleum Company Limited (NNPCL) to explain discrepancies totaling over ₦210 trillion discovered in its audited financial statements from 2017 to 2023. The directive followed a session by the Senate Committee on Public Accounts, where lawmakers reviewed alarming irregularities in NNPCL’s reported accrued expenses and receivables. The company’s Chief Financial Officer, Dapo Segun, and senior officials were present at the hearing but were unable to provide adequate justification for the inconsistencies.

Committee Chairman, Senator Aliyu Wadada, described the situation as “mind-boggling,” particularly in light of Nigeria’s ongoing push to increase government revenue. The Senate flagged over ₦103 trillion in accrued expenses, including retention, legal, and audit fees, none of which were backed by contracts or documentation. One of the more concerning figures was ₦600 billion in retention fees that had no contractual references. Another ₦103 trillion listed as receivables raised further suspicion, with fresh documents contradicting the official audited reports.

Senator Wadada stressed the seriousness of the matter, arguing that such a financial gap undermines public trust and investor confidence, especially as NNPCL eyes a public listing. He criticized the company for releasing “audited” statements that were still under reconciliation. Wadada warned that this could damage Nigeria’s credibility in global markets and called for full transparency in alignment with President Tinubu’s Renewed Hope Agenda.

The Committee also highlighted contradictory financial reports between NNPCL and its subsidiary, NAPIMS. While NAPIMS reported ₦9 trillion in profit from 2017 to 2021, NNPCL recorded a ₦16 billion loss for the same period. These conflicting results raised more red flags about internal reporting practices and the authenticity of NNPCL’s financial claims.

In response to these discrepancies, the Senate issued 11 formal queries and directed the company to submit a comprehensive response within seven days. Senator Wadada concluded by reaffirming the Senate’s commitment to holding NNPCL accountable, stating, “We owe it to Nigerians to follow this through to the very end.” The investigation signals increasing parliamentary scrutiny over public enterprises amid national economic pressures.

Source: The Sun