The Nigerian Senate has ordered the Nigerian National Petroleum Company Limited (NNPCL) to explain financial irregularities totaling over N210 trillion in its audited reports from 2017 to 2023.
The Senate Committee on Public Accounts gave the one-week deadline during a tense hearing on Wednesday, where NNPCL’s Chief Financial Officer, Dapo Segun, and other top officials appeared.
Lawmakers said the figures reported under “accrued expenses” and “receivables” were suspicious and lacked proper documents.
“We are looking at over N210 trillion in just two categories—accrued expenses and receivables. These are not mere rounding errors; they raise fundamental questions about transparency and financial integrity,” said Senator Aliyu Wadada, Chairman of the committee.
The Senate revealed that N103 trillion was recorded as “accrued expenses” without supporting documents. This included N600 billion for “retention fees,” and large amounts labeled as legal and auditor fees, but with no records to justify them.
“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 added.
The committee also questioned another N103 trillion listed under receivables and said NNPCL submitted a revised report just moments before the hearing—one that conflicted with the earlier official audit.
“The new document completely distorts the figures in the official audit. We find that not just ridiculous, but deeply troubling,” Wadada said.
He warned that publishing incomplete or misleading financial statements could damage Nigeria’s international reputation, especially as NNPCL plans to attract foreign investors through a public listing.
“These aren’t internal memos; they’re public documents that potential investors will scrutinise,” he said.
The committee handed NNPCL 11 key questions and expects written answers within one week.
Lawmakers insisted the probe was not a witch-hunt but a necessary move to ensure accountability as the country tries to improve its financial systems under President Bola Tinubu’s Renewed Hope Agenda.
“Access to accurate and verifiable financial data is non-negotiable. These kinds of discrepancies sabotage that mission,” Wadada said.
In a surprising twist, the Senate also discovered that a subsidiary of NNPCL, the National Petroleum Investment Management Services (NAPIMS), reported a N9 trillion profit from 2017 to 2021, while the parent company recorded a N16 billion loss during the same period.
“How can a subsidiary report trillions in profit while the parent company bleeds losses?” Wadada asked.
He promised that the Senate would use every legal means to get to the bottom of the matter.
“This isn’t just about balancing books—it’s about restoring trust in public institutions. Every single kobo must be accounted for,” he concluded.