The Senate Committee on Public Accounts has uncovered alleged financial irregularities totalling N210 trillion in the audited statements of the Nigerian National Petroleum Company Limited (NNPCL), raising concerns over what lawmakers described as severe contradictions and unexplained transactions within the company’s books between 2017 and 2023.
At the centre of the controversy are inconsistencies in receivables and expenditures, including legal and auditing fees paid by NNPCL without adequate documentation.
The committee, chaired by Senator Aliyu Wadada, challenged the company’s Chief Financial Officer, Dapo Segun, during an investigative session held on Wednesday at the National Assembly.
The Senate queried what it described as a lack of transparency in the company’s reported figures, particularly questioning the legitimacy of legal and auditor fees recorded in the financial documents.
According to Wadada, the committee’s concern is rooted strictly in the content of the official audited financial statements available in the public domain.
He stated that the discrepancies observed are not based on speculation but on verifiable figures, namely N103 trillion in accrued expenses and N107 trillion in receivables, collectively amounting to N210 trillion.
Wadada warned that the Senate would not allow the issue to be downplayed, noting that a fresh document submitted by NNPCL during the hearing appeared to contradict its own published audit reports.
The panel dismissed the validity of the new submissions, asserting that any document conflicting with the audited reports would not be considered.
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“It’s just a paper,” Wadada said, insisting that the original audited financial statements remain the benchmark for the investigation.
NNPCL’s CFO, Adedapo Segun, attributed the N107 trillion receivables to joint venture cash calls — funds requested by joint venture operators and payments made by NNPCL, which, he claimed, were pending reconciliation due to procedural lapses.
He explained that the figures represent two sides of a transaction yet to be reconciled, rather than independent financial obligations.
Despite this explanation, the Senate committee maintained its position, issuing a list of 11 queries to NNPCL’s finance team. The company was given a one-week deadline to provide detailed responses.
The committee also disclosed that external auditors had been brought in to assist with the probe, reinforcing the weight of the investigation.
The scrutiny comes amid NNPCL’s plans for an Initial Public Offering (IPO), with lawmakers cautioning that unresolved financial discrepancies could undermine investor confidence.
As part of the federal government’s broader push for transparency under the Renewed Hope agenda, the Senate pledged to ensure accountability in the management of public resources, especially within state-owned enterprises.
