Senate Questions NNPCL's N210tn Receivables, Audit Delays as EFCC makes Arrest

• The Senate has intensified its probe into NNPCL's financial records, demanding answers within 10 working days over an alleged N210 trillion discrepancy between receivables and accrued expenses
• The Committee on Public Accounts, chaired by Senator Aliyu Wadada, flagged inconsistencies between NNPCL’s audited statements and newly submitted documents, warning of constitutional enforcement if justifications aren't provided
• Senator Wadada also criticised NNPCL’s request for a two-month extension, stressing the implications for investor confidence and national financial credibility

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market

The Senate's investigation into the financial operations of the Nigerian National Petroleum Company Limited (NNPCL) has intensified after the oil giant was issued a fresh 10 working days' ultimatum by the Committee on Public Accounts, chaired by Senator Aliyu Wadada.

This development follows concerns about an alleged N210 trillion discrepancy in NNPCL’s audited financial statements.

The committee uncovered N107 trillion in receivables and N103 trillion in accrued expenses during its review of the company’s records from 2017 to 2023.

It has now demanded detailed justifications for these figures, warning that failure to provide adequate explanations would prompt the Senate to fully enforce the Constitution.

The immediate source of the committee’s concern stems from NNPCL’s publicly available audited financial results.

According to Senator Wadada, these records raise serious questions about the company’s financial transparency and stewardship.

The report cites N103 trillion in accrued expenses for audit costs, legal services, and retention fees—none of which were linked to specific contracts or engagements. In particular, N600 billion in retention fees were listed without any supporting documentation.

More troubling is a newly submitted document from NNPCL, handed over just before last Thursday’s meeting, which presents conflicting figures for the N107 trillion in receivables.

“Ironically, the document NNPCL brought this afternoon is entirely inconsistent with the audited financial statement. It’s not just confusing; it’s insulting to the intelligence of the committee,” Wadada stated.

One of the most glaring inconsistencies involves the profit and loss reports from NNPCL and one of its subsidiaries. Between 2017 and 2021, NNPCL reported a loss of N16 billion, while the National Petroleum Investment Management Services (NAPIMS) allegedly made a N9 trillion profit during the same period.

According to a BusinessDay report, behind the scenes lies a crucial race against time that could determine the outcome—or even the continuation—of the probe.

At the heart of the dispute is NNPCL’s request for a two-month deadline extension to answer the Senate’s 11-point query.

In a letter, the company attributed the delay to the absence of key executives, reportedly overseas. However, the committee rejected this explanation.

“This committee is not expecting any documents from the NNPCL. We were expecting answers to the 11 questions we asked them,” Senator Wadada said during Thursday’s session.

“Why should a corporate body like the NNPCL request two months to respond to queries that originated from their own internal audit?” he asked, describing the request as “nonsense” and setting a deadline of July 10.

EFCC arrests top former NNPC financial boss

Legit.ng reported that the Economic and Financial Crime Commission (EFCC) has said it has arrested Umar Isa, the former chief financial officer (CFO) of the Nigerian National Petroleum Commission (NNPC) Limited.

Isa was reportedly arrested over the allegation of $7.2 billion fraud, which was linked to the realisation of Nigeria's refineries.

These included those in Warri, Kaduna and Port Harcourt refineries. The commission also disclosed detaining the former managing director of Warri Refinery, Jimoh Olasunkanmi.

Source: Legit.ng