The Nigerian Senate has launched a major investigation into alleged financial discrepancies totaling over N210 trillion in the audited financial statements of the Nigerian National Petroleum Company Limited (NNPCL), covering the period from 2017 to 2023.
During a heated session of the Senate Committee on Public Accounts on Wednesday, lawmakers issued a one-week ultimatum to the company’s management to explain the inconsistencies. The Committee, chaired by Senator Aliyu Wadada, raised alarm over glaring irregularities in accrued expenses and receivables, calling the figures “mind-boggling” and “unacceptable.”
According to the audit, accrued expenses stood at N103 trillion, including N600 billion in questionable retention fees, legal fees, and auditor charges, all allegedly lacking documentation or contractual references.
“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,” Senator Wadada questioned during the proceedings.
Even more alarming was a separate N103 trillion recorded under receivables, which lawmakers said lacked clarity or proper breakdown.
The Senate expressed outrage after NNPCL submitted a revised document just before the hearing, contradicting the original audited reports already in the public domain. Wadada described the move as “ridiculous” and “deeply troubling,” adding that the audit process’s credibility was now in doubt.
“How do you finalise audited accounts while still reconciling such massive figures? These aren’t internal memos—they’re public documents that investors scrutinise,” he added.
The Committee presented 11 critical questions to the NNPCL management and demanded comprehensive written responses within one week. It emphasized that the probe is not a witch-hunt but a constitutional duty to protect public resources and enforce financial discipline in line with President Bola Tinubu’s Renewed Hope Agenda.
“In a country striving to change its national narrative, access to accurate and verifiable financial data is non-negotiable. These kinds of discrepancies sabotage that mission,” Wadada noted.
Adding another layer of concern, the Senate found that while NAPIMS, a subsidiary of NNPCL, declared N9 trillion in profit between 2017 and 2021, the parent company—NNPCL—reported a N16 billion loss during the same period.
“How can a subsidiary report trillions in profit while the parent company bleeds losses?” Wadada asked, questioning the company’s accounting practices.
The Senate pledged to utilize all legislative tools to get to the root of the matter, vowing that every single kobo must be accounted for.
“This isn’t just about balancing books—it’s about restoring trust in public institutions,” Senator Wadada concluded.
