The Nigerian Senate has issued a one-week ultimatum to the Nigerian National Petroleum Company Limited (NNPCL) to account for over ₦210 trillion in questionable financial entries contained in its audited financial statements from 2017 to 2023.
The demand came during a heated session of the Senate Committee on Public Accounts on Wednesday, where NNPCL’s Chief Financial Officer, Dapo Segun, and other top officials faced scrutiny over glaring inconsistencies in reported figures under “accrued expenses” and “receivables.”
Senator Aliyu Wadada, chairman of the committee, described the irregularities as “shocking” and “unacceptable,” vowing that the Senate would invoke all necessary oversight tools to ensure accountability.
“We’re dealing with over ₦210 trillion in just two financial categories—this is not a rounding error,” Wadada stated. “This is a serious breach of financial transparency and integrity.”
Breakdown of Allegations
According to the committee, NNPCL’s financial statements listed ₦103 trillion as accrued expenses, including ₦600 billion labeled as “retention fees” alongside unspecified legal and audit charges—all allegedly undocumented.
“How can ₦600 billion be recorded as retention fees without a trace of any corresponding contracts or services rendered?” Wadada queried. “There are also legal fees with no evidence of legal representation or outcomes. This is financial malpractice.”
Additionally, another ₦103 trillion was logged under receivables, but without clarity or backing documentation. Senators noted that NNPCL submitted a revised version of its financial records moments before the hearing, which significantly contradicted previously published audited statements.
“The revised document completely alters the financial narrative presented in the audited report. That’s not only irregular—it’s alarming,” said Wadada.
He further criticised the company for finalising and signing off audited accounts while still internally reconciling such massive discrepancies, warning that such practices risk eroding investor confidence—particularly as NNPCL prepares for a future Initial Public Offering (IPO).
Conflict Between Parent Company and Subsidiary
In a development that further raised eyebrows, the committee revealed that NNPCL’s subsidiary, the National Petroleum Investment Management Services (NAPIMS), declared a ₦9 trillion profit between 2017 and 2021, while the parent company posted a ₦16 billion loss over the same period.
“How can a subsidiary generate trillions in profit while its parent company records losses? That contradiction demands a thorough forensic audit,” Wadada said.
Senate Issues 11-Point Query
To get to the bottom of the matter, the Senate has issued an 11-point query to NNPCL and demanded comprehensive responses within seven days. Lawmakers insisted that the probe is not politically motivated but is essential to upholding transparency, especially amid Nigeria’s push for fiscal reforms and revenue optimisation.
Referencing President Bola Tinubu’s Renewed Hope Agenda, Wadada stressed the importance of reliable financial reporting:
“If we are serious about resetting our national trajectory, then financial accuracy and integrity are non-negotiable. These kinds of discrepancies directly sabotage our reform efforts.”
Next Steps
The Senate has pledged to use all legislative tools available to compel full accountability. Senators warned that the public deserves clarity and that no figure, regardless of size or status, would be shielded from scrutiny.
“This isn’t about punishing anyone—it’s about safeguarding national interest,” Wadada said. “Every kobo must be properly accounted for. Nigerians are watching, and we owe them the truth.”
All eyes are now on NNPCL as it prepares to respond to the Senate’s damning allegations in what could become one of the most consequential financial accountability showdowns in recent Nigerian history.
