By Nathaniel Zaccheaus, Abuja
The Senate has given the Nigeria National Petroleum Company Limited (NNPCL) one week to reconcile multiple figures amounting to over N210 trillion in its financial records from 2017 to 2023, which have not been accounted for.
The Senate Committee on Public Accounts, investigating the audited finances of the oil company, gave the ultimatum in Abuja on Wednesday when officials of the company appeared before the panel.
The panel, chaired by Senate Aliyu Wadada, met with a team led by the NNPCL’s Chief Financial Officer, Mr Dapo Segun.
The committee reviewed several conflicting submissions and records in the documents presented by the NNPCL.
For instance, the committee raised 11 questions.
They asked the firm how it came about that National Petroleum Investment Management Services (NAPIMS), a subsidiary of NNPCL, declared a profit of N9 Trillion between 2017 and 2021, while NNPCL itself recorded a loss of N16 billion.
Wadada said, “The explanation of what led to the NNPC’s audited financial statement from 2017 to 2023, which, of course, having looked at that document, we came up with questions.
“But the specific ones today, the most important, were the ones I asked before we eventually decided to give them all the 11 questions and then the ultimatum of one week for them to respond to.
“In the audited financial statement, they said accrued expenses were and still are, since that is what is contained in the statement, N103trn.
“What makes up accrued expenses are retention fees, legal fees and auditor’s fees. Retention is known; of course, it is known to be five per cent of the total contract sum. No reference no mention was made to the contracts that led to this retention.
“And the retention figure is 600 and something billion. And then accrued the legal fees, no details of legal engagements that led to the fee go attached to the legal fees.”
Speaking further, Wadada said, “And the auditor’s fees, we have all seen what you’ve seen; you’ve heard and listened to the audited financial statement that the auditors of NNPC produced.
“The next thing of concern is the receivables. The receivables are N103trn. Ironically, it is entirely independent of what is contained in the audited financial statement that pertains to these receivables.
“Just this afternoon, before the commencement of the exercise, NNPC brought a new document, a document to the committee that is entirely independent of what is contained in the audited financial statement and with items that contradict the items included in the audited financial statement.
“This we found very ridiculous, very unacceptable by the committee. You have listened to all that transpired, and the questions are now handed over to them.
“It is essential for the public to know each of these questions emanated as a result of what we discovered from the audited financial statement of NNPC from 2017 to 2023. Now, on these two items alone, accrued expenses and receivables, we are talking over N210 trillion.
In this day and age, permit me to say that, in Nigeria today, President Bola Tinubu, as the headmaster of the project called Nigeria, is committed to changing the narratives within the system. Changing these narratives, which the Renewed Hope Agenda encompass, cannot be achieved without the necessary and required funding.
“So, it is a government that needs all the support for funds to be made available to the government. And under such a quest, these figures are mind-boggling; they are scary, and they are, of course, worrisome.
“For us, as representatives of the people, we will do the best we can. I know for a fact that this will not just go down the drain.
“Well, how can it be erroneous? It is all based on the figures emanating from the audited financial statement of NNPC. And you’ve heard the contradictions. They said reconciliation had not been done.
“So if reconciliation was not done, why did they sign off on the audited financial statement? This audited financial statement is already publicly available. And NNPC is planning to go to the market for an initial public offering (IPO). “
However, the NNPCL’s team disagreed with the committee’s position, insisting that the conclusions were incorrect.
The team promised to furnish the committee with the correct version within the scheduled one week.
