The Nigerian Senate has mandated the Nigerian National Petroleum Company Limited (NNPCL) to refund ₦210 trillion in unaccounted funds to the Federation Account, after rejecting the explanations provided by the company regarding the whereabouts of this massive sum. This directive comes amid a thorough Senate Committee on Public Accounts investigation into NNPCL’s financial operations from 2017 to 2023.
Senator Aliyu Wadada, chair of the committee, revealed that the ₦210 trillion was identified in NNPCL’s audited financial statements as ₦103 trillion in accrued expenses and ₦107 trillion in receivables. The committee described these figures as “contradictory and unjustifiable.” Wadada stated, “NNPC claimed ₦103 trillion as accrued expenses and ₦107 trillion as receivables—amounting to ₦210 trillion. On question eight, NNPC’s explanation on the ₦107 trillion receivables, equivalent to about $117 billion, contradicts available facts and evidence provided by NNPC itself. The committee is duty-bound to reject this.”
The Senate committee also questioned the credibility of NNPCL’s claim that it paid ₦103 trillion in cash calls to Joint Venture partners in 2023 alone. This figure was scrutinized because NNPCL reportedly generated only ₦24 trillion in crude revenue from 2017 to 2022. Wadada highlighted the inconsistencies, asking, “Cash Call arrangements were abolished in 2016 under the President Muhammadu Buhari administration. How can NNPC claim to have paid ₦103 trillion in one year when it only generated ₦24 trillion in revenue over five years? Where did NNPC get that money?”
The NNPCL Group Chief Executive Officer, Bayo Ojulari, failed to appear before the Senate Committee despite being invited to provide clarification on 19 questions related to the company’s financial records. Due to the unsatisfactory responses and continuous avoidance by NNPCL’s management, Senator Wadada warned that the committee will not hesitate to summon former officials of NNPCL and the National Petroleum Investment Management Services (NAPIMS) for further probe if the current leadership fails to provide credible answers.
He stressed, “If the present management of NNPCL is finding it difficult to provide acceptable answers, it is better they say so. The committee will not hesitate to subpoena former officials of NNPCL and NAPIMS.”
The committee emphasized that transparency and accountability must be upheld in the management of the nation’s oil revenue. The Senate’s instruction is clear: the ₦210 trillion must be refunded to the Treasury to safeguard public funds and restore confidence in the management of Nigeria’s petroleum resources.
This unfolding situation marks a critical juncture in Nigeria’s ongoing battle against financial mismanagement and corruption within the oil sector, underscoring the need for rigorous oversight and fiscal responsibility by state-owned enterprises.
