By Joy Odor
The Nigerian Senate Committee on Public Accounts has launched a probe into the Nigerian National Petroleum Company Limited (NNPCL) over alleged financial discrepancies amounting to ₦210 trillion in its audited accounts from 2017 to 2023.
Senate Committee Chairman Senator Aliyu Wadada (Nasarawa West) in his lamentation during the public hearing described the inconsistencies as “mind-boggling” and “unacceptable,” emphasizing the need for transparency.
According to him, the Key Findings at the meeting include:-
-Accrued Expenses and Receivables:* NNPCL’s 2023 audited report showed ₦103 trillion in accrued expenses and ₦107 trillion in receivables without supporting documentation or contract references.
– *Retention Fees:* ₦600 billion in retention fees were listed without contracts to back them up.
– *Subsidy Discrepancies:* Page 62 of the audit listed ₦3 trillion in subsidy payments, while page 80 listed ₦5.1 trillion, sparking concerns over financial management.
– *Foreign Exchange Loss:* An unexplained ₦2.7 trillion foreign exchange loss in 2017 was questioned, particularly since similar losses weren’t recorded in subsequent years.
– *Joint Venture Cost Deductions:* ₦1.2 trillion in Joint Venture cost deductions between 2019 and 2021 were disputed, with lawmakers arguing these should have been borne by international oil companies”.
In their conclusion, Senate Committee Demands:*
– *Forensic Audit:* A comprehensive forensic audit of NNPCL’s financial statements from 2015 to 2023.
– *Written Responses:* NNPCL and its auditors must respond to 11 written queries within seven days.
– *Transparency:* Full disclosure of parties linked to ₦27 trillion in impairments and clarification on missing oil assets.
Sen. Wadada affirmed that the probe has significant implications, particularly as NNPCL prepares for an Initial Public Offering (IPO).
The Lawmakers warned that listing the company with distorted financials could damage Nigeria’s credibility in global markets and expose investors to fraud risks.
