Senate Demands Answers Over NNPC’s N210 Trillion Financial Mystery

(Nigeria’s Senate. Photo by Business Times)

The Senate Public Accounts Committee has given the external auditors of the Nigerian National Petroleum Company (NNPC) Limited one week to provide a detailed breakdown of over N210 trillion recorded as receivables and payables in the company's audited financial statements, as legislative scrutiny of the state-owned energy firm's finances intensifies.

The directive followed concerns raised by lawmakers over roughly N107 trillion classified as receivables and another N103 trillion listed as payables in NNPC Ltd's audited accounts spanning the 2017 to 2023 financial years.

Committee members noted that repeated engagements with company officials had failed to adequately explain how the figures were arrived at or identify the transactions behind them.

Chairman of the committee, Senator Ibrahim Dankwambo, said the external auditors could not distance themselves from the financial statements having issued unqualified audit opinions on them, and directed them to submit the schedules, working papers and other supporting documents used in arriving at the reported balances within a week.

The hearing grew tense after representatives of the audit firm requested a two-week extension to retrieve the relevant documentation, arguing that the schedules formed part of their audit working papers, a request lawmakers rejected, insisting that documentation backing figures certified in audited accounts ought to be readily available.

Dankwambo maintained that financial statement balances of such magnitude must be supported by detailed schedules identifying the transactions and counterparties involved, stressing that the committee's aim was to seek clarity rather than allege misappropriation of public funds.

Committee member Senator Abdul Ningi cited Sections 88 and 89 of the 1999 Constitution, as amended, arguing that the National Assembly holds constitutional authority to summon individuals and compel the production of documents necessary for its investigations.

He maintained that the auditors were appearing before the committee in a professional capacity and could not invoke client confidentiality to withhold information sought during parliamentary oversight.

Senator Adams Oshiomhole similarly challenged the auditors' position, noting that the questions raised by the committee stemmed directly from audit reports they had signed.

He argued that NNPC Ltd, being a government-owned company, remains accountable to Nigerians through the National Assembly and cannot rely on commercial confidentiality to frustrate constitutional oversight.

Lawmakers noted that NNPC had previously indicated that the balances were largely tied to joint venture cash calls and related obligations, but had yet to provide a transaction-by-transaction reconciliation.

The committee said identifying specific debtors, creditors and the underlying agreements remained essential to verifying the accuracy of the figures reported.

The outcome of the investigation could carry broader implications for corporate governance and financial transparency within Nigeria's oil and gas sector, and may also influence public confidence in the quality of external audits for state-owned enterprises, particularly as regulators push for stronger accountability following the commercialisation of NNPC Ltd under the Petroleum Industry Act.